ASX Health Stocks: Singular jumps 18pc after securing funds, Tax Office wipes smile off Pacific

Good news and bad news for health stocks. Singular Health pumped after securing funds, while a possible tax debt hit Pacific Smiles Group.

Not too much grinning at Pacific Smiles Group with the tax office sniffing around. Picture: Getty Images

Medtech company Singular Health (ASX:SHG) jumped 18 per cent on Friday morning after announcing it had received a binding commitment from CG1 Ventures to take up the full $850,000 placement, announced on August 16, at 5.5 cents per share.

This commitment came after an approval from shareholders at the AGM (annual general meeting) last Friday.

As mutually agreed, CG1 Ventures will pay Singular Health the full amount of $850,000 through a series of monthly instalments.

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Singular has the ability to use the funds as they are received, and the shares and options for the placement will only be issued when CG1 Ventures has paid the committed funds in full, expected to be before February 6 next year.

Under the deal, in the event that CG1 Ventures does not pay the full subscription amount of $850,000, any funds paid by CG1 are non-refundable by Singular and no shares or options are to be issued.

CG1 Ventures is the venture arm of CG1 Solutions LLC, Singular Health’s master distributor in the United States.

“CG1 Ventures is highly excited by the potential of Singular Health’s 3Dicom software and medical file transfer protocol,” said managing partner of CG1 Ventures and CG1 Solutions, Edwin Rivera.

“And we look forward to expanding our footprint here in the United States, as we continue to progress with high value enterprise sales with respected institutions that will form the foundation of future success.”

At 3.30pm Friday (AEDT), SHG was still up nearly 8 per cent for the day.

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Tax office wipes smile off Pacific

Dental clinic network Pacific Smiles Group (ASX:PSQ) says it has received a payroll tax notice of reassessment letter from the ACT Revenue Office, dated November 15.

The reassessment is in respect of the four financial years from 2019 to 2022 (inclusive), and pertains to the treatment of the company’s service and facility agreements with dentists for payroll tax purposes.

The reassessment claimed that Pacific Smiles owed the ACT Revenue Office $884,003 in payroll tax shortfalls.

The ACT Revenue Office has also requested information regarding the 2023 financial year. Pacific Smiles estimates an additional payroll tax reassessment in the order of $350,000 to $400,000 in respect of that year.

PSQ is reviewing the reassessment in detail, and is considering its position.

The company also says it remains open to whether it will object to the reassessment within 60 days of the reassessment date.

Despite the news, PSQ was up by 3.6 per cent for the day at 3.30pm (AEDT).

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Incannex names US registrar for Nasdaq move

Cannabis-focused firm Incannex Healthcare (ASX:IHL) has announced that Incannex Healthcare Inc (or Incannex US), intends to appoint Computershare Trust as its US transfer agent and registrar, upon implementation of the schemes of arrangement.

Incannex US will become Incannex Australia’s new parent company upon transitioning its shares from the ASX to the Nasdaq in the US.

Incannex US’s shares are expected to list on Nasdaq on November 28, with trading starting within 2-3 days as shares are balanced on the Nasdaq open market.

Security holders of Incannex Australia are required to open an online account with Computershare, input their holding and identification details, permitting them direct access to their holdings.

AT 3.30pm Friday (AEDT), Incannex was up just over 1 per cent for the day.

This content first appeared on stockhead.com.au

At Stockhead we tell it like it is. While Incannex Healthcare is a Stockhead advertiser, it did not sponsor this article.

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Originally published as ASX Health Stocks: Singular jumps 18pc after securing funds, Tax Office wipes smile off Pacific