Ergoresearch Inc., a direct wholly owned subsidiary of Ergoresearch Ltd., Laval, Quebec, Canada, acquired Victhom Human Bionics, Montreal, Quebec, for $4.1 million. The sale closed April 26, 2013.
Ergoresearch Ltd. manufactures foot orthotics, and through its various subsidiaries has developed a network of more than 100 orthotic clinics. Victhom is the developer of and receives royalties for the Neurostep® System, which Neurostream Technologies, Saint-Augustin-de-Desmaures, Quebec, is further developing and commercializing under parent company Ottobock, Duderstadt, Germany. Victhom also developed the Power Knee, which is licensed by Össur, Reykjavik, Iceland, for commercialization and enhancement. The company has no long-term debt on its balance sheet and cash on hand of about $1.3 million.
Upon closing of the transaction, the common shares of Victhom were delisted from the TSX Venture Exchange, headquartered in Calgary, Alberta, Canada. Current shareholders of Victhom will receive an all-cash consideration for their outstanding common shares and Series A preferred shares. Victhom will merge with Ergoresearch Inc., and the combined entity will be a private, wholly owned subsidiary of Ergoresearch Ltd., operating under the name Victhom Laboratory.
