StockMarketWire.com - BATM Advanced Communications said Monday it had signed a conditional subscription and shareholders' agreement for an investment of up to $30m to provide additional funds for Ador.

Ador, the group's joint venture with Gamida, would use the funds to commercialise its molecular biology-based solutions.

Prior to the investment, a new company, NewCo, would be established, initially owned 50:50 by BATM and Gamida, which will own 100% of Ador. The investment would be structured through this NewCo, BATM said.

Upon completion of the initial investment of $14.5m, expected to be completed in the first quarter of 2019, NewCo would have an enterprise value of $44.5m and BATM would have an ownership interest in NewCo of 38.2%.

The initial investment would primarily be used to build several systems to be installed with customers for testing; developing and certifying several cartridges catering to different areas of infectious disease; and for sales & marketing efforts.

A further $15.5m would be funded by the end of 2020, dependent on certain milestones being achieved, BATM said.

These milestones related to valid diagnostic results being received for at least 100 patient samples; CE certification; satisfaction of operational and performance requirements; and installation in at least five major healthcare facilities, including at least one major hospital in the US, the company added.

Adors first product, The NATlab reader, a rapid-results molecular biology diagnostics system designed to be used at point-of-care, is currently undergoing final engineering ahead of in-hospital testing in the US and Europe in 2019, with the intention of receiving regulatory approval to enable commercialisation in 2020, the company said.

'With this funding, once completed, we will be able to accelerate and drive forward the commercialisation of our breakthrough NATlab system, which we believe will revolutionise the point-of-care medical diagnostics industry,' said Dr Zvi Marom, Chief Executive Officer of BATM.




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