Will Rafał Brzoska buy Medicalgorithmics shares?
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InPost CEO Rafał Brzoska has made a preliminary offer to buy Medicalgorithmics’ shares in the increased share capital. The company has decided to negotiate a non-binding offer, which concerns the transaction of new shares entitling Rafał Brzoska or an entity indicated by him to 50% of votes at the company’s general meeting.
The offer proposed by Rafał Brzoska includes the granting of a secured loan, which would amount up to USD 20 million and would be paid in tranches as part of the company’s share conversion. The shares would entitle to 50% of votes at the company’s general meeting, and the loan would be secured by shares in Medi-Lynx Cardiac Monitoring, LLC and intellectual property rights, including industrial property rights, of the company’s capital group. For the transaction to proceed, conditions such as satisfactory due diligence results and approval from the company’s corporate bodies and the Office of Competition and Consumer Protection must be met. Due diligence is expected to take between 4 and 6 weeks.
As stated by Medicalgorithmics management, the valuation that was indicated in the non-binding offer is the investor’s valuation and may be subject to change after verification and analysis, which will be conducted at a later stage of the process. Corrected valuation will appear in the binding offer. At the same time, the management board emphasised that the commenced negotiations are part of the company’s assumptions concerning the review of strategic options and do not affect the resignation from the plan of raising capital from the emission of H-series shares. The company also continues to search for investors who could acquire its bonds. The management explained that the decision regarding the sources of financing will be made in accordance with the best interests of the company and will depend on the results of the negotiations and the cost of available financing.
Medicalgorithmics’ financial results
Medicalgorithmics has been present on the market since 2005 and offers solutions in the field of non-invasive medical devices, which are used in cardiology diagnostics, including ECG signal analysis. Medicalgorithmics is responsible for the development of the PocketECG system, which enables remote and 24/7 monitoring of cardiac disorders.
From 2011 to 2017, the company’s revenues increased from PLN 5.8m to PLN 203.3m and the company’s profitability improved, with net profit rising from PLN 3m to PLN 33.6m. However, in later years the company struggled with stagnation and declining revenues, and in 2020 revenues fell from PLN 173.9m to PLN 111.7m. Net loss jumped from PLN 2.6m to PLN 39.9m.
The company’s stock price, which hovered around PLN 200-300 between 2014 and 2017, also changed, while in 2018 it decreased to around PLN 30. At Monday’s closing session, the share price was PLN 18.4. The company’s capitalisation is approximately PLN 80m.
Rafał Brzoska’s investments
Apart from the medical sector, Rafał Brzoska also invests in other industries, such as trade or logistics. Last month, the CEO of InPost bought 10% of shares of the e-obuwie brand from CCC, and the amount of this transaction was 500 million PLN. In turn, in July 2021, InPost, 13% of whose shares are held by Rafał Brzoska, acquired French logistics operator Mondial Relay for EUR 513m.