Current Report No 3/2024
Date of preparation: 01.02.2024
Legal basis: Art. 17 para. 1 of MAR Regulation – confidential information
The Management Board of Medicalgorithmics S.A., based in Warsaw (“the Company”), referring to the Company’s current reports no. 47/2022 and 52/2022, informs that it has received a notification from React Health Holdings, LLC (“React Health”) that, in accordance with the provisions of the Membership Interest Purchase Agreement (“MIPA”) concluded with Medi-Lynx Holdings, LLC (“Buyer”), Medicalgorithmics US Holding Corporation (“Seller”) will receive $660,000 (approximately PLN 2.6 million) as a sale price adjustment for shares in Medi-Lynx Cardiac Monitoring, LLC (“Medi-Lynx”).
This amount was not included in the Company’s financial plan, so upon receipt, it will additionally increase the cash reserves and as an increase in the Medi-Lynx disposal price, it will be reported as financial income in the first quarter of 2024.
This amount, in accordance with the provisions of the MIPA as the Company informed in current report no. 47/2022 of July 15, 2022, represents 65% of the total amount being the difference (savings) between the total amount of disputed potential tax liabilities of Medi-Lynx for Texas sales taxes and excise taxes for the period from July 1, 2014, to December 31, 2020, and the amounts actually paid as part of settling these liabilities by the React Group entities, reduced by any costs of conducting tax proceedings.
This payment was secured by a payment guarantee provided by React Health.
The increased financial resources in the possession of the Company will additionally accelerate the implementation of the Company’s strategy (published by the Issuer’s current report no. 16/2023 of June 19, 2023), adopted after Biofund Capital Management LLC became its largest shareholder.
More on: https://biznes.pap.pl/espi/pl/reports/view/2,552798