CAMBRIDGE: EDX Medical Group plc has secured up to £4 million in funding to advance its portfolio of digital diagnostic products and services, the company announced Monday.
The financing includes £2 million raised through the issue of 14,285,713 new ordinary shares at 14p per share, and a further £2 million via a convertible loan note (CLN) agreement with Professor Sir Chris Evans, the company’s founder and Chief Scientific Officer.
The funding will support commercial expansion and product development, including the marketing of a new testicular cancer diagnostic service unveiled earlier this month.
Oberon Capital acted as sole broker for the fundraising, which attracted participation from both new and existing institutional and high net worth investors. Among them was angel investor Henrik Kraft, former partner at KKR and Apax Partners.
“I am delighted to be backing EDX Medical and Sir Chris as they have developed some highly impressive new diagnostic products in a relatively short period of time,” Kraft said. “Their work on novel prostate cancer testing is particularly exciting.”
Following the share issuance, Sir Chris Evans will hold 35.18% of the company’s issued share capital. He has committed not to exceed a 37.5% stake for the foreseeable future.
Admission of the new shares to trading on the AQSE Growth Market is expected on Oct. 23, pending regulatory approval.
“This investment will enable us to accelerate our development and production of our pipeline of exciting products,” Evans said. “We are very pleased by the level of interest from investors who are willing to support the business at a level we all believe is a more accurate reflection of the real value of the Company.”
The CLN carries a 5% annual coupon and may be drawn down in £400,000 tranches over a 48-month term. Conversion terms stipulate equity issuance at either 14p per share or the price of any future subscription exceeding £1 million.
The transaction qualifies as a related party arrangement under AQSE Growth Market rules. EDX directors, excluding Evans, confirmed the terms are fair and reasonable for shareholders.
Dr. Mike Hudson, CEO of EDX Medical, said the funding reflects continued confidence in the company’s strategy to deliver class-leading diagnostic solutions.