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ZICOM GROUP LIMITED — Capital/Financing Update 2014
Sep 24, 2014
66117_rns_2014-09-24_890b6506-b025-4632-b6a0-c2cf42e9bf48.pdf
Capital/Financing Update
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ABN 62 009 816 871 Zicom Group Limited
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38 Goodman Place, Murarrie, Queensland 4172 • Tel: (07) 3908 6088 • Fax: (07) 3390 6898
25 Sept 2014
Market Announcement Office Australian Securities Exchange Level 6, 20 Bridge Street SYDNEY NSW 2000
Dear Sir,
Appointment as a Medtech Accelerator
We are pleased to announce that the Group’s wholly owned subsidiary, Zicom MedTacc Pte Ltd (MedTacc), has been appointed a Medtech Accelerator by SPRING Singapore (SPRING), a Government’s agency responsible for enterprise development.
As an appointed Medtech Accelerator, SPRING Singapore will co-invest with MedTacc on growth phase medtech start-ups over the next 4 years on 1:1 basis. MedTacc and SPRING shall commit S$15m each making a total available investment pool of S$30m.
When start-ups enter growth phases, their risk profile improves. Coupled with SPRING’s coinvestment, the risks typical to such investments would be further mitigated for MedTacc.
Under the Scheme, SPRING would grant options to MedTacc to acquire their investments at nominal compound rates per year in the event the investments prove commercially viable and value may be unlocked.
The Group’s investments on such growth phase start-ups will come from internal resources without any negative impact expected on its existing businesses. No bank borrowings are intended.
The Scheme aligns with the Group’s directions to increase its focus on investments in technology. No immediate impact on the Group’s profitability is expected. However we believe significant benefits could accrue in the medium to long term.
Yours faithfully Zicom Group Limited
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-------------------------------G L Sim Chairman.