Obtaining regulatory approvals and commercialising innovative medtech is never easy. Yet equally, I’m becoming increasingly more confident that Avingtrans' (AVG) medical devices subsidiary Magnetica Limited will ultimately bring to market its grounding breaking small form, helium-free MRI scanner for the orthopaedics and veterinary sectors, which has a total addressable market of around £400m.
Today, Avingtrans said that it was upping its stake in the business from 61% to 74% via a debt-to-equity swap worth A$4.35m, or £2.5m, and a further A$6.21m (£3.5m) injection of share capital.
Here, both Avingtrans' CEO Steve McQuillan and CFO Stephen King are highly accomplished directors and M&A experts. That suggests they would only be making such a follow-on investment (of around £6m) if they firmly believed there was good chance of delivering significant shareholder value.
Sure, there are still risks. But overall these look manageable and importantly more than offset by the possible substantial rewards. What’s more the extra funding is another perfect example of the Board’s PIE (Pinpoint-Invest-Exit) strategy. What's more, the money should be sufficient to finance Magnetica for the foreseeable future.
As such, I’m looking forward in hearing more at the interims on Wednesday 22nd February.
Avingtrans creating value through acquisitions
Jan 18, 2023Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

