(Alliance News) - Intelligent Ultrasound Group PLC on Friday said it intends to raise GBP5.2 million, before the deduction of fees and expenses, via a share placing.
The artificial intelligence software company said it will issue 49.4 million shares at 10.5p each.
The placing price equates to a 8.7% discount to the closing mid-market price of 11.5p a share on Thursday.
The AIM stock was trading 4.1% higher in London at 11.97 pence a share in the afternoon trading, giving Intelligent Ultrasound a market capitalisation of GBP26.3 million.
The placing has been arranged by Cenkos Securities.
The company said it intends to use GBP4.8 million net proceeds to complete the initial development work on the next ScanNav products that include liver, prostate and Covid-19 variants.
In addition, Intelligent Ultrasound said it intends to develop a new neonate simulator and to strengthen the balance sheet.
The remaining net proceeds will be used for general working capital purposes.
"We are an ambitious business that is creating and developing world-leading AI image analysis software to support clinicians in their use of ultrasound and I would like to thank our shareholders for enabling us to continue to build upon the success we achieved in 2019," said Chief Executive Stuart Gall.
"Once we are through this current period of Covid-19 related uncertainty, the funds raised should enable the group to reach profitability from the anticipated Clinical AI software revenues streams that are expected to generate long-term income for the group over the coming years," added Gall.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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