SINGAPORE (THE BUSINESS TIMES) - A wholly-owned subsidiary of Q&M Dental Group has completed its acquisition of Covid-19 test kits and related business from biotech company Acumen Research Laboratories (ARL), Q&M said in a bourse filing late on Sunday (July 5).
The subsidiary, Acumen Diagnostics, is a joint venture between Q&M and ARL founder Ong Siew Hua. Q&M in April agreed to invest $3 million in cash from internal funds into Acumen Diagnostics to build a new Covid-19 testing business.
Q&M on Sunday said that following internal review and due diligence, Acumen Diagnostics had agreed to pay ARL an additional $250,000 in cash, subject to certain performance conditions having been met.
This amount will be paid from Q&M's $3 million injection into Acumen Diagnostics, the mainboard-listed company said.
As part of the joint venture agreement announced in April, Acumen Diagnostics was to issue new shares to Dr Ong, Dr Ong's sister-in-law Amy Zeng, and Acumen Holdings, such that they will each hold 30.7 per cent, 5 per cent and 13.3 per cent of Acumen Diagnostics, respectively.
Ms Zeng has been helping Dr Ong with sales at ARL, while Acumen Holdings is a private investment holding company. Dr Ong, Ms Zeng and Acumen Holdings will work with Q&M to develop Acumen Diagnostics' business further, Q&M said then.
Following the completion of the share subscriptions on Friday, Q&M's shareholding in Acumen Diagnostics is now 51 per cent, it said.
Q&M shares ended Friday at 44 cents, down 0.5 cent or 1.1 per cent.