Medtecs International Corporation, via its wholly-owned subsidiary Medtecs (Asia Pacific), has entered into a joint venture agreement with ACO International to establish their relationship as shareholders of a personal protective equipment (PPE) production facility.
The facility, named Resilient Medical, was incorporated by Medtecs (Asia Pacific) on Jan 18 with an issued and paid-up capital of $1,000 comprising 1,000 shares, which the company holds entirely.
In a filing to SGX on March 2, Medtecs stated that Resilient Medical will undertake the development of a fully vertically integrated PPE platform including product development, manufacturing, sales and distribution.
Under the agreement, Medtecs (Asia Pacific) and ACO will each inject USD$2.5 million ($3.3 million) in paid-up capital into Resilient Medical, resulting in a 50% stake respectively.
Resilient Medical will also change the currency of its share capital to US dollars (USD) from Singapore dollars (SGD).
SEE: Medtecs partners Taiwan-listed Mytrex Health Technologies to expand presence in international market
Medtecs says that the partnership with ACO will enable the company to expand its market share worldwide, particularly in the US, given ACO’s connections within the healthcare sector there.
“ACO has connections to a significant network of health systems, hospitals and healthcare related providers and organisations, and its product development, sales and distribution capabilities, which will provide the Group with an opportunity for immediate access to the US market,” it stated.
According to the filing, ACO is a special purpose vehicle incorporated in 2015 in the British Virgin Islands by a group of experienced and established professionals with extensive knowledge in the medical product supply chain and deep relationships across the US healthcare market. The current sole director and effective shareholder of ACO is Tung Sung-Yuan.
Pursuant to the terms of the joint venture agreement, ACO will assist in the site selection for the PPE production facility. Upon Medtecs’ approval of the proposed site, both parties will assist Resilient Medical with the purchase and development of the site.
Shares in Medtecs closed 4.5 cents or 4.5% lower at 95.5 cents on March 2.
