Nasal stent company Rhinomed delisted from the ASX in February last year, whilst continuing operations as an unlisted company. Its largest shareholder, Whitney George, has made an acquisition bid for the company at $0.04 per share. Given George's increasing interest in the company, it is not a surprising move.
Shareholders in Rhinomed will be offered either cash for their shares or equivalent scrip in a new US entity called RHC. At the time of delisting, George held a 42% stake in the company.
The directors of Rhinomed are recommending the bid and are electing to take their consideration in scrip. The bid values the company at $19 million.
In FY2024, Rhinomed generated sales of $9.0 million, up 21% on the previous year. Its net loss recorded was $6.0 million. The company had borrowings of $11.7 million at the end of June last year.
For the most recent half-year, the company generated revenue of $4.7 million, with a net loss of just $1.1 million, due to a significant drop in marketing and employee expenses.
Bioshares recommendation: Not covered
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