Intelligent Ultrasound raises £5.2m for balance sheet, working capital

11th Nov 2022 13:20

(Sharecast News) - Artificial intelligence (AI) ultrasound technology developer Intelligent Ultrasound announced the raising of £5.2m on Friday, to strengthen its balance sheet and provide working capital.

The AIM-traded firm said the funds were being raised through a placing and subscription of 42,504,112 placing shares and 13,712,108 subscription shares to new and existing institutional and other investors, at a price of 9.25p each.

It noted that the issue price equated to a nil discount to the closing mid-market 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 £4.8m would be used to strengthen its balance sheet and provide additional working capital, including funding the ongoing development of its existing products.

Intelligent Ultrasound said the fundraising remained conditional on shareholder approval at a general meeting in Cardiff on 30 November.

"The directors are very pleased with the response to the oversubscribed fundraising and are thankful to the new and existing shareholders for their continued support," said chief executive officer Stuart Gall.

"The directors consider this to have been an excellent year and the Group remains on target to meet the market expectation of £10m revenue in 2022."

"With a strong simulation portfolio for 2023 and three clinical AI-related products launched in the market and generating early revenues, the board is confident that this fundraising will drive growth in sales that will take the group to profitability, as well as achieving the group's aspirational vision of £25m revenues by 2025, in what the directors believe is an exciting and dynamic market."

At 1122 GMT, shares in Intelligent Ultrasound Group were up 0.11% at 9.26p.

Reporting by Josh White for Sharecast.com.