Artificial intelligence (AI) ultrasound technology developer Smart Ultrasound on Friday announced the raising of £5.2 million to strengthen its balance sheet and provide working capital.
The AIM-listed company said the funds were raised through the placement and subscription of 42,504,112 placement shares and 13,712,108 subscription shares to institutional and other new and existing ones, priced at 9.25 pence each.
He noted that the issue price was equivalent to a zero discount to the average closing price of 9.25p on Thursday, with the new shares to be issued representing 17.2% of the company’s enlarged share capital.
The board said the net proceeds of £4.8 million would be used to strengthen its balance sheet and provide additional working capital, including to fund the ongoing development of its existing products.
Intelligent Ultrasound said the fundraising remained conditional on shareholder approval at a general meeting in Cardiff on November 30.
“The directors are very pleased with the response to the oversubscribed fundraising and thank new and existing shareholders for their continued support,” Chief Executive Stuart Gall said.
“The directors consider this year to have been excellent and the Group remains on track to meet market expectations of £10 million in revenue in 2022.”
“With a strong simulation portfolio for 2023 and three AI-related clinical products launched to market and generating early revenue, the board is confident that this fundraising will drive sales growth that will drive the group to profitability, as well as achieving the group’s ambitious vision of revenue of £25 million by 2025, in what the directors see as an exciting and dynamic market.
At 11:22 GMT, shares of Intelligent Ultrasound Group were up 0.11% at 9.26p.
Reporting by Josh White for Sharecast.com.