EGI.L Regulatory News (EGI)

Electrical Geodesics, Inc.

Trading and Strategy Update

EUGENE, OREGON, US, 22 December 2014 - Electrical Geodesics, Inc. ("EGI" or the "Company"), a leading neurodiagnostic medical technology company, today provides an update to shareholders on current trading and its plans to exploit the opportunities presented by advances in neuromodulation.

The Company believes that by continuing to deliver high definition EEG diagnostic and imaging products for the research and clinical markets and developing compelling products for the large and growing neuromodulation market it could generate significant returns for its shareholders. The near term opportunity to demonstrate the utility of its dEEG systems alongside existing neuromodulation products and to sell GTEN 100 systems to new and existing research customers (post CE mark which is expected in the first half of 2015) is attractive. Furthermore, as previously disclosed, the Company, with the support of a number of leading key medical opinion leaders, had planned a multi-centre feasibility study of its GTEN 100 system for temporary seizure suppression in patients with drug-resistant epilepsy as a first step in developing its own therapeutic product. 

The Directors have previously stated that additional financial and other resources would be required in order to exploit the potential of EGI's technologies in the management and treatment of disease.

The Company has recently been in discussions with shareholders and other investors with regards to funding the Company's acceleration into the neuromodulation space as well as the general working capital and sales and marketing requirements of the Group. The Company received support from a number of its existing shareholders for a financing proposal which would have met these needs and enabled the Company to advance its plans in neuromodulation in both epilepsy and depression in parallel, however this proposal has not received sufficient support to be advanced further at this time. 

Reflecting shareholder and potential investor feedback the Company is therefore developing an alternative financing proposal requiring a smaller amount of equity to be raised. One of the main objectives of this financing proposal would be to deliver a business model which would be self-sustaining within 18 to 24 months whilst investing in a smaller, proof of concept, study evaluating GTEN as a treatment in epilepsy. The Directors see this as a logical and attractive first step for the Company in developing its own therapeutic neuromodulation product range.

Trading since the interim results for the six months ended 30 June 2014 has been in line with the Board's expectations and the Company has strong visibility of sales for the full year ending 31 December 2014. Unaudited revenues for the ten months to 31 October 2014 were $9.8 million (an increase of 15% on the same period in 2013) and the Directors remain confident of delivering revenues broadly in line with market expectations for the year ending 31 December 2014 and will make a further trading update in January 2015.

The Company's cash reserves as at 18 December 2014 were approximately $0.8m million. In addition the Company has an undrawn $1.25 million bank credit line secured on the assets of the business and which currently expires on 31 March 2015.

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Notes to Editors

Electrical Geodesics, Inc. in Summary

Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic and neuromodulation products used to monitor, interpret and modulate brain activity, based on its proprietary dense array electroencephalography ("dEEG") platform technology. The Company's technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.

EGI's dEEG systems, available in the GES 300 and now the GES 400 lines, capitalise on the Company's unique Hydrocel Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI's technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI's proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company's products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).

See our website www.egi.com

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