EMS 0.00% 3.2¢ eastland medical systems ltd

ems is on the right track

  1. 4,447 Posts.

    This will be in the west australian tomorrow. I also exspect another announcement in the near future about finishing trial production. The last time ems went in to a trading holt the stock went up by 240%

    Eastland picks up medical products player

    By Ruth Williams

    BIOTECH minnow Eastland Medical Systems has made its second acquisition in 10 months with a cash and scrip deal to buy a Sydney medical products distributor.

    The West Perth retractable needle maker hopes to partly fund the buy with a placement of up to $5 million to institutional and sophisticated investors - the latest in a string of capital raisings in Perth's fledgling biotech sector.

    Intersuisse Corporate is placing up to 10 million shares in Eastland at 50¢ each, a 10 per cent discount to the stock's close yesterday of 55¢, up 1¢.

    But Eastland said yesterday it could not disclose the full price details of the purchase of Medical Industries Australia until the deal become unconditional, probably within the next week.

    Eastland managing director Don O'Sullivan described MIA as a major Australian distributor and supplier of medical, therapeutic and allied products to hospitals, clinics, medical practitioners and pharmacies.

    He said Eastland expected to post its first operating profit this financial year as a result of the purchase of MIA, which recorded revenues of $8.5 million in 2002-03.

    "The most important part of the acquisition is that we are buying a business that deals with the same customer base that we will be selling our products to," Mr O'Sullivan said.

    "It gives us a distribution and marketing capability, an experienced marketing team and a proved distribution network for our products."

    Eastland came to national attention in April when it announced an advance in its needle manufacturing technique.

    The news prompted a trader-driven 240 per cent surge in the company's stock over two days on massive volumes.

    Eastland shares traded as high as 88¢ in April - they were worth just 8¢ a year ago - but have since fallen back to hover between 50¢ and 60¢.

    The company has posted a string of good news in recent months, including the first Middle East orders for its chest valve products, the purchase of safe needle patents in Japan, South Korea and South Africa and a $2 million share and option placement.

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