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Jayex Technology (ASX:JTL) taps investors for $1.83m to fund Brainworks investment

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ASX:JTL      MCAP $1.406M
09 August 2021 15:10 (AEST)

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Healthcare software specialist Jayex Technology (JTL) is tapping investors for $1.83 million through a one-for-three entitlement offer.

The company flagged the capital raise late last week, with new shares offered under the entitlement offer at 2.5 cents each.

This price represents a 16.6 per cent discount to the 15-day volume-weighted average price of Jayex shares from before the capital raise was announced.

The company said it would use the cash injection to help fund its US$2 million (A$2.72 million) investment into US-based Brainworks Foundry, which was announced in late July.

Jayex said Brainwoks’ AI tech platform, which is designed to allow key patient vital signs to be measured with a smartphone camera, is in preliminary clinical trials. By investing the $2.72 million, Jayex will nab a 14 per cent stake in Brainworks.

The one-for-three entitlement offer is not underwritten, but Jayex said it had granted JP Equity Holdings the first right of refusal to pay any shortfall under the entitlement offer. JP Equity will pocket six per cent of any funds it places should there be a shortfall under the entitlement offer.

Jayex Executive Chairman Michael Boyd said the company was working to expand its operations and move into new premises, hence the Brainworks investment.

“As stated in prior announcements, JTL is expanding its offering to its 3300 GP Clinics in the UK, Australia and New Zealand, through the Jayex Connect Platform, adding new functionality in demographic data and expanding to clinical data, patient focussed data and remote patient monitoring,” Mr Boyd said.

“It is a natural extension to potentially provide other technologies in the future and the investment into Brainworks gives the company a starting position.”

Jayex’s tech platform is designed to streamline hospital and medical practitioner processes and improve patient experience.

From control queue management to appointment booking and a practitioner dashboard, Jayex said its tech was designed to boost patient engagement within any hospital or practice.

Mr Boyd said by investing in Brainworks, JTL had an opportunity to expand its technology and have a hand in developing Brainwork’s genomic pathology tech.

Jayex’s entitlement offer opens on Monday, August 16, and closes on Wednesday, September 1.

In May, Jayex rebranded from Jayex Healthcare to Jayex Technology and now trades under the ticker JTL. The company said the name change reflected a shift in focus to new technology even as the company remained in the healthcare sector.

Shares in JTL closed flat at 2.5 cents each on August 9.

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