Small Parcels Consolidation Closed Successfully
SYDNEY, Australia, Friday 25th October 2019: Uscom Limited (ASX code: UCM) (the Company or Uscom) today announced the successful closure of its small share parcels capital consolidation initiative. Approximately 345,939 UCM shares were consolidated as a single holding by Boardroom Pty Limited for sale by a contracted stockbroker for sale on market with all funds returned to the investors. The consolidation and sale reduced the total number of UCM shareholders by approximately 25%.
The small parcels consolidation was conceived to provide a commercially feasible pathway for investors with small parcels of UCM shares to transact without incurring broker costs, which in some instances may have exceeded the value of the holding. A small share parcel is defined as less than $500 AUD in value at the time of offer. Investors participating in the consolidation will receive payment for their holding following on market sale. The share proceeds will be delivered to each shareholder proportional to their holding following the receipt of funds and disbursement. Uscom will meet the costs of the consolidation and transaction of the shares for participating shareholders.
The initiative resulted in an approximately 25% reduction in the number of total Uscom shareholders without change to the currently listed 142m UCM FPO shares. The benefit to the Company is a reduced shareholder base and a decreased administrative cost of communications.
Executive Chairman of Uscom, Associate Professor Rob Phillips said “The small parcels consolidation and sale strategy benefits both shareholders and the company. The initiative provides a viable pathway for the sale of small share parcels at market price and allows us to consolidate our register and reduce administrative costs. The cost for sale of one large parcel is much less than for many small parcels and will be met by the Company. Investors had the choice to retain their small holdings, increase their holdings on market, or by default participate in the consolidation.”
Uscom manufactures and markets the USCOM 1A, the Uscom BP+, and the Uscom SpiroSonic digital ultrasonic spirometry technologies. These premium digital devices are changing the way we diagnose and treat cardiovascular and pulmonary diseases. The USCOM 1A provides vital guidance for optimising management of sepsis and the administration of fluid, inotropes and vasoactive therapies in critical care monitoring. The BP+ SpiroSonic devices improve diagnosis and management of hypertension, heart failure, asthma, COPD and sleep disorders in the clinical and home care environments.