• Uscom to sell 100% subsidiary UCM SNG to AXO Medtech VCC for $2.591 million
• Proceeds to be used to pay down Uscom's loans to chairman and major shareholder
• AXO plans to retain Uscom's business, employees and operations

Uscom Limited has announced that it has entered into an agreement, subject to shareholder approval, to sell the whole of its businesses and assets to a Singapore-based VCC investment company, AXO Medtech VCC, for $2.591 million. The consideration will be settled by transferring to UCM SNG, Uscom's 100% subsidiary that owns the Uscom IP and assets, the liability of $1.591 million owed to Uscom's chairman Prof Phillips and $1 million owed to a substantial shareholder, Jetan Pty Limited. Upon completion of the sale, Uscom will have cash assets of approximately $200,000, a small amount of trade assets and liabilities, and no other business assets. Uscom has incurred losses and had negative cash flow for several years, and has had difficulty raising sufficient cash in the Australian market to develop its global operations. The sale to the Singapore-based investment fund is expected to allow the Uscom business to raise the capital needed to transform into a profitable business. AXO has advised that upon acquisition of UCM SNG, it intends to carry on the current Uscom business, continue to operate all current subsidiaries, retain all current employees, and raise capital by issuing shares to investors to substantially develop the global operations more quickly.