Vincent Medical Holdings Limited (“Vincent Medical” or together with its subsidiaries, the “Group”, stock code: 1612), announced today a strategic investment in Retraction Limited (“Retraction”), a Hong Kong-based endoscopic device company.
The preference share subscription agreement entered between Vincent Medical, Retraction and its founder shareholders provide a two-step equity investment in Retraction by the Group. In the first tranche, Vincent Medical will subscribe from Retraction newly issued shares representing 20% of Retraction’s issued share capital as enlarged by the first tranche subscription at a consideration of US$750,000. In the second tranche, Vincent Medical will subscribe newly issued shares representing 20% of Retraction’s issued shares as enlarged by the second tranche subscription at the same consideration, subject to the achievement by Retraction on certain operational milestones as stipulated under the shareholders’ agreement to be entered into between Retraction and its shareholders, bringing Vincent Medical to a total subsequent holding of 40% of the entire issued share capital of Retraction.
The total consideration for the investment is approximately US$1,500,000 (approximately HK$11.6 million). Upon completion of the agreements, Mr. To Ki Cheung, Executive Director and Chief Executive Officer of the Group, will be appointed as a Director of Retraction.
Retraction is principally engaged in the design, development and commercialization of retractors for minimally invasive surgeries. Its flagship product “REVEEL” has patented design features for soft tissue mobilization and retraction in endoscopic and laparoscopic procedures. The device, already secured CE certification and FDA 510(k), is currently sold through various distributors to hospitals in Europe, South East Asia, the Middle East, and other jurisdictions. Retraction plans to expand its product range by introducing new REVEEL models with enhanced features. It also plans to launch its products in new markets including, among others, the U.S., the PRC, Japan and Korea.
Mr. Vincent Choi, Founder, Chairman and Executive Director of Vincent Medical, said, “Vincent Medical is committed to identifying and exploring suitable opportunities to introduce innovative medical technologies and enhance its product offering. This investment is in line with our development strategies as we see in it opportunities to expand our anaesthesia and surgical tools product portfolio. We will contribute our manufacturing infrastructure and expertise, as well as our distribution networks to help Retraction develop and commercialise a broader range of innovative surgical tools. We are confident that this investment will bring synergies and business potential to the Group in the long run.”
Mr. Stuart Moran, Chief Executive Officer of Retraction Limited, said, “We are very excited to have Vincent Medical as a strategic shareholder, demonstrating its confidence in Retraction’s business strategies, mission and experiences in improving endoscopic surgery with innovative and high quality devices. This strategic partnership will enable us to leverage Vincent Medical’s market position, manufacturing expertise and global distribution networks in the medical device industry to speed up growth of our business.”