Following the Company’s market update on the 26 October 2009, the Board has assessed both companies with which it has signed Heads of Agreements.
The first was the purchase of 100% of a digital marketing and communications business and the other was for the purchase of 51% of a company that was synergistic with the Company’s Red Paragon subsidiary. The Company decided not to proceed with the latter.
The Board of Medic Vision (MVH) is however pleased to announce it has successfully completed its due diligence of the digital marketing and communications company, cBox Pty Ltd, and will proceed to purchase the company.
cBox is an innovative digital marketing and communications business offering cost effective digital marketing and communication solutions on a global scale via fax, email, mobile phone/sms and Interactive Voice Recognition (IVR).
cBox’s services and systems will provide Medic Vision with low cost marketing and communications functions for the geographically diverse global territory within which it operates. Medic Vision has tried to cover the China/Asia and UK/Europe territories with the traditional marketing approaches for years however; the high operational costs and slow response rates associated with traditional marketing activities have not been profitable. cBox is able to provide Medic Vision with targeted marketing and communications solutions on a low cost basis so that the Company has the best opportunity to deliver results from its businesses. cBox has a number of clients and the business is profitable in its own right. Therefore, acquiring cBox will provide Medic Vision with cost effective and targeted marketing and communications solutions whilst providing a positive contribution to Medic Vision’s cashflow.
As consideration for the acquisition of cBox, Medic Vision will issue approximately 45,000,000 fully paid ordinary Shares on acquisition, followed by the issue of up to approximately 18,000,000 additional fully paid ordinary Shares if and when, the holders of the Medic Vision convertible notes, convert the notes into Medic Vision shares. All shares issued for the acquisition of cBox will be held in voluntary escrow for a period of 12 months from the date of issue.
Medic Vision is a technology based company specialising in the application of technology for surgical and medical skills training. Medic Vision provides consulting services in the development of skills training centres as well as developing and deploying computer-based surgical and medical high fidelity simulators.
