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Ellex seeks more time to close sale of key business segment

Ellex Medical Lasers has set a new mid-January deadline to complete its ongoing negotiations with a major European group over the sale of its lasers and ultrasound business.

The Adelaide ophthalmic device manufacturer suspended trading on the Australian Securities Exchange on 28 November after an unsolicited approach to purchase the largest of its three business segments.

The voluntary suspension period, which was due to expire on 12 December, has been extended to 15 January to allow Ellex to continue discussions with the group, by which point the company expects to announce a deal or cease negotiations.

The move ensures trading in Ellex’s securities can take place on an informed basis, however the company has stressed to shareholders the deal is not a foregone conclusion.

“The additional suspension is requested to allow Ellex to continue negotiations with the counterparty given the complex nature of the structure proposed in order to finalise a binding agreement,” Ms Kimberley Menzies, Ellex global finance manager and company secretary, said.

The sale of the lasers and ultrasound devices would see Ellex lose its largest earning business segment that accounts for approximately 80% of total revenue.

The company would hold on to its iTrack minimally invasive glaucoma device and its Retinal Rejuvenation Therapy laser 2RT therapy for intermediate age-related macular degeneration.

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Ellex in negotiations to offload lasers and ultrasound