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- e-Health company G Medical Innovations (GMV) intends to raise up to $10 million to settle its debt and expand its U.S. operations
- The company will repay nearly US$3.5 million to Magna, a New York-based fund, through the cancellation of convertible notes issued in 2018
- At the time, the funding allowed the company to develop its marketing strategy
- Further supporting its strategy is the $30 million funding announced in December from a Luxembourg-based investment group
- The remaining funds from the raise will be put towards growing its U.S. sales team and developing the Prizma and VSMS Patch devices
- G Medical is down 7.62 per cent today, with shares trading for 9.7 cents each
G Medical Innovations (GMV) will pursue a capital raising of up to $10 million and will cancel convertible notes issued to MEF I,L.P. (Magna).
In 2018, Magna, a New York-based fund, invested in G Medical and subscribed to 3,250,000 convertible securities.
This provided G Medical with US$3.25 million in funding to develop its sales and marketing strategy.
Currently, the e-Health company is focused on scaling up its U.S. operations and requires financial flexibility to do so.
“Following these initiatives, G Medical will be well-positioned to realise its full potential,” CEO and Managing Director Dr Yacov Geva said.
Funds raised under the proposed $10 million placement will allow G Medical to settle its debt to Magna, expand its sales team in the U.S., increase research and development efforts for its Prizma and VSMS Patch devices and progress regulatory approvals.
The VSMS Patch is a clinical-grade solutions ideal for clinicians and health care professional to monitor their patient’s health. It can measure your heart rate and rhythm, blood pressure, body temperature and position, and location.
The Prizma device is a smartphone case that efficiently and cost-effectively checks vital signs, and monitors and improves your health.
G Medical will pay a settlement amount to Magna of US$3,425,664.47 (approx. A$5.1 million) and issue to a number of shares equivalent to A$200,000.
The placement will be subject to shareholder approval at a general meeting to be announced soon.
Further supporting its growth strategy is the company’s $30 million funding facility with GEM Global Yield Fund as announced in December.
“The company will have the balance sheet flexibility and support from GEM Global to rapidly scale up U.S. operations, complete R&D and regulatory approval processes in key markets and progress strategies to enter key markets where our products have been approved,” Dr Yacov added.
G Medical is down 7.62 per cent today with shares trading for 9.7 cents each at 11:09 am AEDT.
