Medi Lifestyle eyes $6.76m deal for 60% of Q&M’s EM2AI

The proposed acquisition will be paid entirely with new shares.

Medi Lifestyle has signed a non-binding agreement to acquire a 60% stake in dental artificial intelligence company EM2AI from Q&M Dental Group for about $6.76m.

The proposed consideration will be satisfied entirely through the issuance of 138 million new Medi Lifestyle shares at $0.049 each.

EM2AI develops AI solutions that analyse dental X-rays, automate dental charting and generate structured information to support dentists’ treatment planning. Its AI X-ray detection and automated dental-charting systems have been deployed across Q&M’s clinics in Singapore.

The transaction would give Catalist-listed Medi Lifestyle a majority interest in EM2AI and mark its entry into technology-enabled healthcare. The company currently operates businesses in outsourced permanent-placement services and commodities trading.

Before the transaction is completed, EM2AI’s clinic-management system business, EM2Clinic, will be transferred out of the company and excluded from the sale.

The parties also intend to establish minimum net profit after tax targets for the EM2AI group of $1m in FY2027, $1.5m in FY2028 and $2.5m in FY2029. The detailed mechanism will be included in the definitive agreements.

As one of the proposed conditions, Medi Lifestyle will undertake to raise or procure at least $30m in capital within two years after completion.

The funds will support EM2AI’s subsequent business activities, including expansion in Singapore and Southeast Asia. Medi Lifestyle said it intends to conduct a private placement to support its expansion and strategic growth initiatives.

Q&M said the disposal would allow it to concentrate on its dental healthcare operations while retaining exposure to EM2AI’s future performance. After completion, Q&M will continue to own 40% of EM2AI and will also hold shares in Medi Lifestyle received as consideration.