Intelligent Ultrasound (IUG ), the ultrasound AI software and simulation company, has announced a placing to raise £5.2m through the issue of 56.2m shares at 9.25p/share.
Intelligent Ultrasound has conditionally raised £5.2m through the issue of 42.5m placing shares and 13.7m ordinary shares (56.2m shares in total) to new and existing investors at 9.25p/share. The issue price matches IUG's closing mid-market price of 9.25p on 10 November.
The new shares will represent 17.2% of IUG's enlarged share capital. The fundarising was arranged by Cenkos Securities.
Intelligent Ultrasound said net proceeds of £4.8m will be used to strengthen its balance sheet and provide additional working capital, including funding ongoing development of existing products. The placing shares are expected to be admitted to trading on AIM at 8 AM on 2 December 2022.
The fundraising is conditional on shareholder approval at the company's general meeting to be held at 11 AM on 30 November 2022.
Stuart Gall, CEO, commented: "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. 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 FY22."
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The additional capital afforded by this placing will strengthen IUG's balance sheet and keep it funded as it further develops its simulation and clinical AI portfolios. Expenses for the fundraising are estimated at £400K, leaving IUG with £4.8m. This capital should be enough to keep the company funded until it reaches profitability, a significant milestone for ANY company.
Intelligent Ultrasound has grown its sales from £4m in 2017 to a forecast £10m in 2022 from two revenue streams: Simulation and Clinical AI:
- Simulation has performed extremely well over the past couple of years and even rapidly developed a COVID module during the pandemic to assist doctors recognise and diagnose the condition. This division has contributed the vast majority of revenue to date and helped fund the development of the Clinical AI business.
- The Clinical AI side of the business is in the early stages of commercialisation with only £0.6m of current revenue but is expected to grow dramatically in 2023 and beyond as IUG deploys its ScanNav and NeedleTrainer imaging and training technologies. Clinical AI is a key component of IUG's long-term growth strategy as the company aims to develop further products in the area of anomaly detection in a big and growing market.
Overall, this has clearly been a good year for IUG and the company remains on target to meet market expectations of £10m revenues in FY22.
With a strong simulation portfolio going into 2023 and three clinical AI related products launched and generating early revenues, IUG's sales growth trajectory should take it to profitability in the near term, with £25m of revenues likely by 2025.
The announced placing's issue price equates to a zero discount to IUG's closing price yesterday. IUG shares were trading up 2.7% on the news this morning.
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