4DMedical announced today that it has secured an At-the-Market (ATM) funding facility with Alpha Investment Partners (AIP) to enhance its capital management program.
This move comes as the company accelerates the commercialisation of its XV Technology in the US and Australia, the company saiAdd a New Postd in an ASX announcement.
ATM funding facilities allow publicly traded companies to raise capital incrementally at prevailing market prices, providing a flexible alternative to traditional secondary offerings.
The ATM facility with AIP will provide 4DMedical with up to $30 million in equity capital over the next three years.
Combined with the company’s strong cash balance of $41.2 million as of 31 March 2024, and growing revenues, this funding mechanism is expected to support 4DMedical’s path to profitability while minimising shareholder dilution.
This facility does not prevent 4DMedical from raising capital through other means if strategic opportunities arise.
One key advantage of the ATM facility is that 4DMedical retains full control over the placement process, including the discretion to utilise the ATM, set the number of shares to be issued, and determine the floor price.
The final issue price will be the greater of the floor price set by 4DMedical or up to a five per cent discount to a Volume Weighted Average Price (VWAP) over a chosen period.
As part of the agreement, 4DMedical will place 19 million shares from its Listing Rule 7.1 capacity as collateral for the ATM facility, which can be bought back at any time subject to shareholder approval.
4DMedical’s MD/CEO and Founder Andreas Fouras expressed confidence in the company’s strategy, stating, “We are building a generational business with foundations for rapid, scalable growth.”
“With a strong cash balance, growing revenues, and controlled costs, the ATM facility ensures we won’t need further secondary raisings for working capital.”
He noted that while the ATM is a relatively new mechanism in Australia, it is widely used in the United States, and he said it will effectively support 4DMedical’s capital needs.
