The Singular Health Group Ltd (ASX: SHG) share price has returned from its trading halt and is sinking lower on Monday.
At the time of writing, the medical technology company's shares are down 13.5% to 60 cents.
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Why was the Singular Health share price in a trading halt?
Last Monday the Singular Health share price was placed into a trading halt and subsequent suspension pending the release of an acquisition and investment announcement.
That announcement has now been made and reveals that Singular Health has entered into binding agreements to further enhance its capabilities in surgical planning, 3D visualisation, and the vertical integration of medical computer aided design and additive manufacturing.
According to the release, the company intends to acquire Virtual Surgical Planning software and integrate it into its existing MedVR software.
In addition to this, Singular Health plans to invest $300,000 for 25% equity stake in Australian Additive Engineering (AAE). AAE will then lease polymer and titanium 3D printers for capital efficient manufacturing of craniofacial surgical guides and personalised fixment plates.
Management believes the transactions will strengthen Singular Health's mission to develop technologies to provide patients and practitioners with access to personalised, enhanced medical data. They also expect them to form part of a long-term vision by all parties to deliver a personalised end-to-end surgical planning platform in the maxillofacial sector from scan through to surgery.
Purchase order
In other news, the company has revealed that leading medical computer aided design company, Lyka Smith, has agreed to purchase 50 licenses of integrated software for maxillofacial planning at $300 per month per license.
Lyka Smith's Managing Director, Benjamin Baxter, said: "Lyka Smith is looking forward to working with Singular Health and the opportunities provided by integrating VSP into MedVR/3Dicom. We have demonstrated MedVR to a number of clients and the interest received led to our commitment to purchase 50 licenses."
Singular Health's Chief Executive Officer, Thomas Hanly, added: "It has been a considerable amount of effort by all parties and we at Singular Health are excited to be working with Lyka Smith to integrate the Virtual Surgical Planning software into MedVR and optimise their existing processes for maxillofacial surgery preparation."
"The commitment by Lyka Smith to purchase 50 MedVR licences (following integration with the VSP software) for their clients, reinforces Singular Health's position as a leader in the development of world leading medical visualisation and planning software."
Mr Hanly also spoke positively about the future and working with AAE and its executive Hugh Tevelein.
"Furthermore, we are very pleased to invest in and work with Hugh and his team, with his extensive experience in metallic 3D printing and presents us with the opportunity to accelerate our commercialisation strategy in the healthcare 3D printing industry that, according to Frost and Sullivan, is estimated at US$1.63 billion and is forecast to grow to US$3.78 billion by 2025 at a CAGR of 20.4% between 2015 and 2025," he concluded.
However, judging by the Singular Health share price performance today, some investors aren't as sure about these transactions as management is.
