- Commitments received for a $2.6m funding package
- Product development of APAS Revolution designed to target smaller sterile drug manufacturing facilities
- Clear growth opportunity alongside continued APAS Independence sales
- Funding package includes a targeted $1.0m capital raise together with a $1.6 million unsecured loan
AI microbiology automation specialist Clever Culture Systems (ASX: CC5) is on target for an expansion of its APAS product portfolio with the development of APAS Revolution.
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APAS Revolution is a new benchtop configuration of the Automated Plate Assessment System (APAS) technology, designed to extend automated environmental monitoring to pharmaceutical manufacturing facilities of all sizes.
The company has successfully secured commitments for the funding package of $2.6 million to accelerate the development program for APAS Revolution in response to customer demand for a smaller-format system suited to lower-volume manufacturing facilities, including sites within the global networks of existing APAS customers.
CEO and MD, Brent Barnes, said these facilities require the quality, traceability and efficiency benefits of automated environmental monitoring offered by the APAS technology, but do not require the processing capacity of APAS Independence.
He added that APAS Revolution is adapting the core plate reading and interpretation technology already used in APAS Independence which lowers the cost of development, reduces the development timeline and lowers the development risk.
“APAS Revolution is an important step in expanding the commercial opportunity for Clever Culture Systems. It will allow us to bring our proven technology to smaller pharmaceutical manufacturing facilities and creates an opportunity to serve more sites within our existing customers’ global networks,” Mr Barnes said.
“By adapting the core technology already used in APAS Independence, we can broaden our offering through a targeted, capital-efficient development program. The $2.6 million funding package allows us to accelerate that program while maintaining our focus on growing APAS Independence sales.
“This is a measured investment with meaningful strategic potential: a complementary product, a significantly larger addressable market and a pathway to deeper relationships with pharmaceutical customers.
“This capital raise, along with the loan facility, provides a capital light approach to product development designed to maximise shareholder value. This is consistent with our commercialisation goals of transitioning CCS into a growing and profitable business.”
The company estimates a TAM exceeding 3,400 APAS Revolution instruments in addition to the 2,300 APAS Independence instruments.
CC5 was down 10.5% to 1.7¢. Mkt cap $41.46M.
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