(Sharecast News) - Avingtrans announced on Wednesday that its chief executive officer Steve McQuillan has been appointed as the non-executive chairman of the Oxford-based emerging medical technology business Adaptix.
The AIM-traded firm said that at the same time, it was investing a further £2m in Adaptix through a convertible loan note.
In 2021, Avingtrans invested £4m in Adaptix for an 11.9% stake, with the board saying the new investment represented a "significant further endorsement" of the Adaptix team and its plans for "disruptive" 3D x-ray technology.
"It is intended that the additional funding will be used to take Adaptix up to the point of award of 510(k) approval from the US Food and Drug Administration (FDA) for its orthopaedic 3D x-ray product, with marketing and subsequent product sales in the US expected to commence thereafter," the board said in its statement.
"Adaptix has already placed trial units of its veterinary product in the United States, and will commence sales in 2023."
Avingtrans said the intention was for McQuillan to remain as chairman until Adaptix appointed a replacement experienced medical technology chair, which was likely to occur "sometime" in 2023.
"The key objective for Steve and for the replacement chair will be to lead Adaptix to a successful exit, currently planned for 2024."
At 1558 GMT, shares in Avingtrans were up 5% at 420p.
Reporting by Josh White for Sharecast.com.
Avingtrans (AVG)