Pro Medicus invests $10m in 4DMedical
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The news: Medical imaging software firm Pro Medicus has made a $10 million strategic investment in small-cap rival 4DMedical to accelerate its commercial pipeline and to advance its CT:VQ lung tissue scanning software towards regulatory clearance.
The numbers: Pro Medicus will provide $10 million to 4DMedical through a hybrid debt and equity loan facility agreement that accrues 12.5% interest per annum and will mature in two years.
At maturity, 4DMedical will pay Pro Medicus the higher of $12.5 million or an alternative payment of up to $20 million that will be determined by the relative change in 4DMedical’s volume-weighted average share price.
In addition, 4DMedical will pay Pro Medicus an amount of shares that will be determined by the relative change in 4DMedical’s volume-weighted average share price.
The context: 4DMedical CEO and founder Andreas Fouras said the investment will put the company in a strong position to take CT:VQ to market once it receives regulatory approval from the US Food and Drug Administration.
What they said: “4D stands at a very exciting moment, with rapid growth in sites and scans month on month against a backdrop of falling costs,” Fouras said.
“Add to this the growing momentum in the Philips [comprehensive distribution agreement] partnership, and the shortening timeline to expected FDA clearance of CT:VQ, we are set for extremely strong performance over the coming months.”
The source: ASX
