A COMPLEMENTARY health technology company is hoping September 11 will prove an auspicious date for its growth plans.
A COMPLEMENTARY health technology company is hoping September 11 will prove an auspicious date for its growth plans.
Salter Point-based Medec is planning to list on the Australian Stock Exchange on that day.
Its initial public offering, which closes on August 29, aims to raise $3.5 million through an offer of seven million shares at 50 cents each. However, according to its prospectus, the company has worked out an expenditure plan based on a raising of $2 million as well.
The company is involved in the development, manufacture and commercialisation of energy medicine products based around magnetic treatments.
It plans to use the money raised from the offering for research and development, marketing and promotion, existing product development, working capital, to cover increased administration costs for the next two years and to cover the expenses of the offer.
Medec chairman and CEO Josef Plattner said the company held the international rights for the technology, namely its biograph, bioresonance and pulse systems.
He said the biograph measured the electrical resistance registered at the acupuncture points that corresponded with the body’s 12 main meridians. If the biograph registers high resistance at any of those points that indicated a potential problem that would be treated by either the bioreso-nance or pulse systems.
“These systems were used by the Russian space agency from the 1980s to monitor the health of its cosmonauts,” Mr Plattner said.
According to the prospectus, the company plans to draw its earnings from retail sales, supplying other companies with its technology, developing additional products and through licensing its intellectual property.
The company has a manu-facturing facility in Germany and distributors in the US, Chile, South Africa and Hong Kong.
It secured a $54,189 Export Market Development Grant in 2002.
Mr Plattner said as a public unlisted company it had sales of $900,000 in 2001-02 and $2.5 million in 2002-03.
“About 15 per cent of the sales are cash flow,” he said.
According to the prospectus Mr Plattner will earn about $92,000 a year – $72,000 in salary and $20,000 in directors fees – from the company plus a share and option plan of at least $20,000.
An entity controlled by Mr Plattner and his wife Marion will receive about $24,000 a year in rent from Medec.
Non executive directors Giulio Cimetta and Christopher Seels and company secretary Lloyd Halvorson complete the board.
A report by independent accountant Hayes Knight GTO, included in the Medec prospec-tus, warns that the company “could become uncompetitive in the fast-developing world of medical technology”.
Indeed, the prospectus identifies that the company has about 30 competitors.
The sponsoring broker for the float is State One Stockbroking, Bentleys MRI is the auditor and Balkiston & Crabb the solicitor.
