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- Shares in healthcare tech company Emerald Clinics (EMD) have been locked up today ahead of a capital raise announcement
- At this stage, EMD stock will remain frozen until Monday, August 31, unless the company is able to make an announcement about the raise earlier
- So far, there’s no information about how much Emerald Clinics is aiming to raise or where the funding will go
- In a company update last week, Emerald said it recorded nearly 800 customer appointments over July — a 133 per cent increase on appointments since December 2019
- And earlier this month, the company also signed an agreement with the world’s largest cannabis company, Canopy Growth
- But at the end of the June quarter, Emerald had nearly $3.7 million in the bank, meaning, if current spending levels stay the same, the company has less than three-quarters of funding still available
- EMD shares last traded for 9.9 cents on August 26
Shares in healthcare tech company Emerald Clinics (EMD) have been locked up today ahead of a capital raise announcement.
At this stage, EMD stock will remain frozen until Monday, August 31, unless the company is able to make an announcement about the raise earlier.
So far, there’s no information about how much Emerald Clinics is aiming to raise or where the funding will go.
In a company update last week, Emerald said it recorded nearly 800 customer appointments over July — a 133 per cent increase on appointments since December 2019.
Earlier this month, the company also signed an agreement with the world’s largest cannabis company, Canopy Growth. Under the agreement — said to be valued at £400,000 (around A$723,000) — both companies will collaborate on a real-world evidence (RWE) data system.
Despite the new contract, in its June quarterly report, Emerald went cashflow-negative by $1.4 million, bringing its year to date balance sheet nearly $4.7 million into the red.
The company did table $207,000 in customer receipts, but it wasn’t enough to outweigh nearly $700,000 in research and development charges, as well as over $400,000 in staff, admin and corporate costs.
At the end of the June quarter, Emerald had nearly $3.7 million in the bank, meaning, if current spending levels stay the same, the company has less than three-quarters of funding still available.
As a result, news of a capital raise may not be all that surprising to Emerald’s investors.
EMD shares last traded for 9.9 cents on August 26.
