A prominent medtech firm has successfully secured £11 million to back its strategic growth initiatives.
The Chepstow-based company plans to further bolster its financial position with an additional £5 million through a retail offer.
The recent £11 million fundraising effort was achieved through a new share placement with major institutional investors. This initiative is set to enhance the company’s ability to meet its commercial and operational objectives, particularly in the field of minimally invasive surgical endoscopy for pre-cancer and cancer patients.
The firm is also engaged in a significant partnership deal, selling 51% of its European subsidiary to the Chinese company Micro-Tech. Micro-Tech is a market leader in endoscopic medical devices in China, boasting annual sales of around £250 million.
The acquisition is pending regulatory approvals in China and Europe and is anticipated to be finalised early next year.
Following the completion of the partnership deal, the company is expected to receive cash proceeds of approximately £25.2 million.
This substantial cash injection will be utilised to further invest in its core business segments and accelerate the development and scaling of its product offerings.
It aims to strengthen its financial position and support its mission to improve patient outcomes.
Craig Gulliford, the firm’s chief executive, highlighted the critical importance of the new funding. “The net proceeds from the fundraising will be instrumental in accelerating the growth of our technology,” said Mr Gulliford.
“This will ensure we can meet the increasing global demand for our advanced energy multi-modal instrument for flexible endoscopy and further develop and scale our product offerings.”
In the first half of 2024, the company reported revenues of £15.2 million, a slight decline from £15.7 million the previous year. The underlying EBITDA losses widened from £9.2 million to £10.5 million.
Despite the immediate financial challenges, broker Cavendish remains confident in the firm’s technology and its long-term viability.
Cavendish’s analyst note suggests that the firm will become EBITDA positive by 2028, predicting a cash low point of £5 million that year.
The company’s commitment to innovation is unwavering, as it continues to invest in developing cutting-edge medical technologies.
These advancements are expected to drive significant improvements in patient care and operational efficiencies within the healthcare sector.
In summary, the medtech company’s recent fundraising and strategic partnership efforts underscore its commitment to growth and innovation.
With additional financial backing and strategic partnerships, it is well-positioned to meet its commercial objectives and deliver sustained value in the medtech sector.
