- Mach7 Technologies (M7T) has raised an additional $11.4 million in capital, through a retail entitlement offer
- The medical imaging software company previously raised $23.4 million through a placement and institutional raise
- In total, $34.8 million in capital has been raised by the company
- The capital will be used to buy Client Outlook Inc. and their image viewing technology
- Shares in the company are trading up 8.25 per cent, at $1.05 per share
Medical imaging software company Mach7 Technologies (M7T) has raised $11.4 million through a retail entitlement offer.
Combined with $23.4 million, picked up from a placement and institutional raise last month, the company has secured its goal of raising $34.8 million in capital.
The funds will be used to buy 100 per cent of outstanding shares in Client Outlook, allowing Mach7 to acquire the company in full.
The total cost associated with buying Client Outlook is C$38.5 million (roughly A$40.8 million).
Mach7 is interested in Client Outlook’s eUnity enterprise image viewing technology, which gives clinicians quick and easy access to high-quality medical images.
Speaking on the successful capital raise and future Client purchase, Mach7 CEO, Mike Lampron, said he was grateful for investors support.
“We will now complete the acquisition of Client Outlook and focus on delivering our growth potential, improving patient outcomes, and service delivery for our healthcare customers,” he said.
Mach7 believes acquiring the Canadian imaging service will allow it to offer a full suite of imaging service to the medical profession.
In the meantime, under the terms of the retail entitlement offer, 16,794,848 new shares will be issued at a cost of 68 cents per share.
Retail shareholders will collectively walk away with 15,555,413 shares, while Morgans Corporate makes up the shortfall and takes 1,239,435 shares.
The new shares will be issued on Friday, July 3, 2020, while trading of the new shares can commence on Monday, July 6, 2020.
Shares in Mach7 are trading up 8.25 per cent, at $1.05 per share at 3.36 pm AEST.