Uscom Limited (ASX: USM), an Australian medical device company focusing on non-invasive cardiovascular and pulmonary monitoring technologies, has announced it has entered into an agreement to sell its businesses and assets to AXO Medtech VCC, a Singapore-based investment company. The sale is subject to shareholder approval, with a meeting scheduled for early November 2025 to consider the proposal. Completion of the transaction is expected within 14 days of shareholder approval.
The decision to sell to AXO Medtech VCC follows years of losses and negative cash flow for Uscom. The company has faced challenges in raising sufficient capital in the Australian market to develop its global operations and achieve profitability. Uscom’s directors believe that the sale to a Singapore-based investment fund is the most viable strategy to secure the necessary capital for the business’s transformation.
Under the agreement, Uscom will sell all shares in its wholly-owned subsidiary, Uscom Sng Pte. Ltd (UCM SNG), which owns the Uscom IP and assets used in the worldwide business. The consideration for the sale is $2.591 million, to be settled on completion by transferring Uscom’s liabilities of $1.591 million owed to Prof Phillips and $1 million to Jetan Pty Limited to UCM SNG. Following the sale, Uscom will have approximately $200,000 in cash assets and a small amount of trade assets and liabilities.
AXO Medtech VCC intends to continue Uscom’s current business, operate all current subsidiaries, retain all current employees, and raise capital to develop the global operations more quickly. The consideration of $2.591 million represents 0.996 cents per Uscom share. The company will request the ASX to lift the current suspension on trading in Uscom shares, pending shareholder approval of the sale.
