Zortrax, the Polish 3D printer manufacturer, has signed a reverse merger deal with Corelens, the optical medical firm, that will enable it to be a publicly-listed company on the Polish NewConnect stock exchange.
The deal means that all of Zortrax's assets will be transferred to Corelens which will issue 97 percent of its shares to Zortrax shareholders in exchange. This will enable Zortrax to expand on the medical applications of its systems and after the merger it will have a value of $39.6 million.
Zortrax Product Lines
Based in Olsztyn, Poland, the company specializes in manufacturing desktop 3D printers as well as offering a variety of post-processing, printing materials and software solutions to its customers. The company markets its products through a network of 130 partners in 90 countries to service industries ranging from automotive design and architecture to the textiles sector.
An example of a recent application of the firm's 3D printing technology is the German company Lightning Cosplay which used Zortrax's M200 printer systems to fabricate video-game inspired cosplay outfits. The company has also developed a range of bio-compatible resins (under the Inkspire label) that is aimed at the growing popularity of medical desktop 3D printing.
Zortrax Reverse Merger
In order to capitalize on the growth in demand for these type of applications (and to enhance the medical compatibility of its printers) the company has opted to merge with the clinical firm Corelens as a good strategic fit. As an added benefit it could also raise a significant funding by floating its shares on the stock exchange, depending on the company's future financial results and the confidence of its investors.
The reverse merger will result in Corelens issuing Zortrax's investors with approximately 111,937,500 shares which represent the equivalent of 97 percent of the company. Fifteen new Corelens shares will be issued in exchange for each Zortrax share to the company's existing shareholders so that they retain the same percentage of ownership in the new company that they had before.
By choosing to structure the deal as a reverse merger Zortrax will be listed as a public company on the NewConnect Polish stock exchange. As part of its public listing due diligence Zortrax has conducted an independent valuation of its assets which has set its value at $39.6m. Despite the opportunities presented by the merger the move also comes after the company reported a revenue decline in its most recent financials of 16 percent. This was due to the impact of the pandemic on its Chinese-based contractors who were forced to close earlier this year and resulted in them having to suspend the production of components used in their 3D printers.
Nonetheless the company operates in an interesting segment of the market in medical desktop printing that is likely to see future growth.
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