Uscom Agrees to $2.59M Sale of Entire Business to Singapore Investor
Uscom Limited has struck a deal to sell its entire business to Singapore-based AXO Medtech VCC for $2.59 million, aiming to unlock capital for growth under new ownership. Shareholder approval is the next critical step before the transaction can proceed.
- Sale of 100% subsidiary Uscom Sng Pte. Ltd to AXO Medtech VCC
- Consideration of $2.591 million settled via loan transfers
- Shareholder approval required in November 2025
- Post-sale, Uscom retains minimal cash and no operating assets
- AXO plans to retain employees and accelerate global expansion
Background and Rationale
Uscom Limited, an ASX-listed medical device company, has announced a significant strategic move to sell its entire operating business and assets. The sale is to Singapore-based investment company AXO Medtech VCC, subject to shareholder approval. This decision comes after years of losses and negative cash flow, compounded by challenges in raising sufficient capital within the Australian market to support global growth ambitions.
With operations primarily in China and Singapore, the board believes that transferring ownership to a Singapore-based fund offers the best chance to secure the necessary funding and operational support to transform Uscom into a profitable enterprise.
Terms of the Transaction
The transaction involves the sale of all shares in Uscom's wholly owned subsidiary, Uscom Sng Pte. Ltd (UCM SNG), which holds all intellectual property and business assets globally. The agreed consideration is $2.591 million, to be settled by transferring outstanding loans owed by Uscom to key stakeholders, including the chairman Prof Rob Phillips and substantial shareholder Jetan Pty Limited.
Upon completion, Uscom will be left with approximately $200,000 in cash and minimal trade assets, effectively divesting itself of its core business operations. The sale is scheduled to be completed within 14 days following shareholder approval, with a general meeting planned for November 11, 2025.
Future Plans Under New Ownership
AXO Medtech VCC, established recently under Singapore’s Variable Capital Companies Act, intends to continue operating the Uscom business and its subsidiaries without disruption. The fund plans to retain all current employees and aggressively pursue capital raising to accelerate global development efforts, which have been constrained under Uscom’s previous ownership.
This strategic shift aims to leverage AXO’s investment capabilities and Singapore’s financial ecosystem to unlock growth potential that was previously unattainable.
What Lies Ahead for Uscom Limited
Following the sale, Uscom Limited will be a shell company with limited cash and no operating assets. The board has indicated it will explore options including winding up the company and returning cash to shareholders or pursuing a new acquisition. The company’s shares are currently suspended, with plans to request lifting of the suspension for up to six months to allow time for these decisions.
Investors will be watching closely to see how Uscom navigates this transitional phase and whether it can identify a new path forward or return value to shareholders through liquidation.
Bottom Line?
Uscom’s sale to AXO marks a pivotal reset, but the company’s future beyond this deal remains uncertain.
Questions in the middle?
- Will shareholders approve the sale at the upcoming meeting?
- How quickly can AXO raise capital to scale Uscom’s global operations?
- What strategic direction will Uscom Limited pursue post-sale?
