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PreCheck Health Services Agrees to Acquire Medical Device Firms For $15M

NEW YORK — PreCheck Health Services said today that it has signed an agreement to acquire medical device firms LD Technology and Medical Screening for $15 million in cash and stock.

The announcement follows PreCheck's disclosure last month that it had agreed to acquire medical clinic operator CPD Integrated Healthcare and JAS Consulting, a provider of healthcare management, billing, and coding services.

PreCheck distributes a US Food and Drug Administration-cleared medical screening device to physicians called PC8B that is designed to run a range of tests including the company's ankle brachial index test. The Denison, Texas-based also owns two subsidiaries that operate health food restaurants. 

The acquisitions announced today will strengthen PreCheck's point-of-care screening capabilities, it said. 

According to PreCheck, LD Technology manufactures the PC8B system, while Medical Screening owns all of LD Technology's patents and technologies. Under the terms of the acquisition, PreCheck will pay $5 million in cash upfront, as well as a deferred payment of $7 million in cash and $3 million in stock within 12 months, for both companies.

PreCheck, which reported $22,123 in cash at the end of June 30, said it is working to raise the capital needed to complete the transaction.

In July, PreCheck said that it had agreed to acquire CPD and JAS for 5 million preferred shares convertible into 5 million shares of its common stock once the stock begins trading at $2 apiece, plus $1 million in cash. 

During midday trading on the Over The Counter markets PreCheck's shares were flat at $.72.

"All four of these proposed acquisitions collectively put us on the right path for aggressive expansion through the offering of a multitude of medical screening technologies and billing and management services while also allowing us to operate seven medical clinics," PreCheck CEO Lawrence Biggs said in a statement. "Furthermore, we will own all the patents, FDA device clearances, and proprietary technology necessary to create a vertically integrated medical screening services platform."