The incorporation of the owned associate, which is engaged in using AI in dental care, will accelerate Q&M’s transition into a full digital dental ecosystem.

Q&M Dental has entered into a share purchase agreement to acquire the remaining 51% of shares it does not already own in associate company EM2AI on March 31. 

The proposed acquisition will be for a consideration of 1.606 million ordinary shares worth $1.76 million. 

EM2AI has been a 49% owned associate company of Q&M Dental since March 5, 2024, when the company completed a partial loan conversion.

The 51% is currently owned by an investment holding company in which Q&M Dental’s executive director and group CEO Ng Chin Siau is a major shareholder of. 

EM2AI was incorporated on Nov 12, 2018 and is engaged in developing AI for dental pathology detention, dental treatment planning through clinical dental support system and clinical management system through integrated dental management system. 

According to the bourse filing, EM2AI has an issued and paid-up share capital of S$3.15 million comprising 3.15 million ordinary shares. EM2AI is a loss making entity which has incurred $1.39 million in losses since its incorporation. The net assets value of EM2AI is $1.76 million. 

EM2AI most recently announced that it secured medical device licences in four Asean markets — Thailand, Vietnam, Indonesia and the Philippines, and has entered an MOU with a dental solutions provider to use its dental artificial intelligence (AI) solutions across 1,000 dental clinics in the region.

Q&M Dental says that full control of EM2AI enables the group to maximise synergies, integrate operations and enhance efficiencies, as well as provide holistic and cost-effective support towards the group’s strategic direction and growth plans.

The full acquisition of EM2AI will allow it to accelerate its transition to a fully digital dental ecosystem and help standardise treatment protocols across its clinics, ensuring high-quality patient care. 

The completion of the acquisition will be completed either the date falling two business days after the date on which the last of the conditions precedent has been fully or waived or such other date as the parties may agree in writing. 

Shares in Q&M Dental closed 0.5 cents higher or 1.724% at 29.5 cents on March 31.