Listed health care concern, MedTech Holdings Limited has struck a deal to dispose 40% stake to Dubai-based Nu Age Cosmetics and Pharmaceuticals that would result in the injection of fresh capital into the business.
In an interview after the company’s 12th annual general meeting last week, finance director, Patrick Mccosh, said the company would also provide technical assistance.
He said all the necessary arrangements surrounding the deal had been completed with only paper work left to tie the loose ends.
“This new partnership agreement is effective starting this July. We are very excited about this new development and we now have access to other markets that we have not been distributing to before,” said Mccosh. He said the company had been facing a number of challenges as a result of undercapitalisation.
“We couldn’t access borrowed money and we have since agreed with a foreign investment to assist with recapitalisation,” said Mccosh.
The group recently reached an agreement with a local company based in Matabeleland for the distribution and selling of some of its products.
Group turnover for the year ended 2010 improved from $2 million to $7,4 million.