Functions in hedgehog (Hh) signaling. Regulates the release and extracellular accumulation of cholesterol-modified hedgehog proteins and is hence required for effective production of the Hh signal (PubMed:15110707). Synergizes with SCUBE2 to cause an increase in SHH secretion (By similarity). Interacts with SHH; via the cholesterol anchor of the dually lipid-modified SHH (ShhNp). Ubiquitously expressed throughout the embryo from fertilization onward. Accumulates at higher levels in the notochord, the ventral floor of the brain as well as dorsal and ventral margins of the myotome. Belongs to the dispatched family.