‘No shock’: Qld medical device firm collapses
A Queensland ASX-listed company specialising in the development of medical technology has been tipped into administration months after trading was suspended.
Medigard, which developed retractable syringe and other medical device technologies, was put into administration on Wednesday.
The Gold Coast company and its 135m ordinary shares have been suspended from trading since March 2019.
Shares last traded at 2c, well below the 48c high on the first day of trade in 2004.
Medigard's financial problems had been brewing for some time.
In the 2019-20 financial year it recorded a $264k net income following a $854k loss in the prior period.
A financial report lodged on August 31 raised questions about the company's ability to continue as a going concern.
If found Medigard's survival relied on its ability to raise further capital and to settle a $150,000 liability.
Medigard promoted itself as a providing patients and health professionals "with safe and efficacious products that are cost-effective and innovative".
It had a market cap of $3.45m, already developing medical safety devices to reduce the incidence of needlestick injuries to healthcare workers.
Medigard's products included blood collection devices, auto-retractable syringes and flash back needles.
Executive Director Ian Dixon told The Courier-Mail COVID-19 "hasn't helped" the company, but suggested its administration had been predicted.
"Medigard has been skating along and I don't think people should be hugely surprised," he said.
"It's disappointing, but I don't think people should be surprised.
"There's going to be a whole lot of companies who find themselves in a similar situation to us because of what we've faced for the past nine months."
Dr Dixon, who owns 80m shares as part of his remuneration package, declined to speculate on whether the company would emerge from administration.
"Time will tell," he said.
Pearce & Heers administrators Michael Dullaway and Mark Pearce were voluntarily appointed to the company on November 11.
Medigard is the second of Queensland's ASX-listed companies to collapse into administration within one week after Smiles Inclusive went under on Monday.
Smiles Inclusive had 52 practices nationwide when it floated in April 2018 after raising $32 million.
But a near-endless series of dramas soon engulfed the firm, culminating in this week's appointment of voluntary administrators.
The final straw was a failure to repay NAB more than $12m of a $19m facility that came due last week.