- G Medical Innovations (GMV) will raise $6 million to terminate convertible notes and strengthen its balance sheet
- In 2018, Magna, a New York-based fund, invested in G Medical and subscribed to 3.25 million convertible notes
- At the time, this helped the company advance its sales and marketing strategy
- In addition to repaying Magna, G Medical will pay back loan funds owed to CEO and Managing Director Dr Yacov Geva
- G Medical is pleased to strengthen its balance sheet to position it for its next phase of growth
- Company shares have dropped 12.4 per cent and are trading for 9.2 cents each
G Medical Innovations (GMV) will raise $6 million to terminate convertible notes and strengthen its balance sheet.
G Medical will use the money to repay Magna, a portion of loan funds owed to Managing Director Dr Yacov Geva, for working capital purposes and to cover placement costs.
In 2018, Magna, a New York-based fund, invested in G Medical and subscribed to 3,250,000 convertible securities. This helped the company to advance sales and marketing.
The funds will be raised through the issue of 85,528,236 shares to sophisticated and institutional investors at an average issue price of $0.07 per share.
Subject to shareholder approval, the company will also issue up to six million unlisted options to qualifying brokers and Australian Financial Services License holders who helped to raise placement funds. Each broker option will be exercisable at 25 cents and expire within 18 months from the issue date.
“The funds raised from this placement allow G Medical to cancel all outstanding convertible notes and will leave the company well-positioned as it enters into its next phase of growth,” CEO and Managing Director Dr Yacov Geva said.
G Medical has ticked off a number of milestones in the recent months that have created a strong foundation for growth. The company hopes to continue this momentum across the remainder of 2020 and beyond.
Company shares have dropped 12.4 per cent and are trading for 9.2 cents each at 11:17 am AEST.