Feedback PLC (AIM:FDBK) announced a placing to raise at least £10mln to fund growth opportunities in the National Health Service (NHS) and other healthcare systems in the UK and abroad.
The specialist clinical communication company said the placing is priced at 0.7 pence per share, which is a discount of 11.9% to yesterday’s closing price.
Around 71.42mln new shares will be issued to qualifying shareholders to raise up to a further £0.5mln.
The funding proceeds will be used to develop Feedback’s CareLocker product and its Bleepa platform, to accelerate growth in the UK and manage overseas operations, to undertake a tuberculosis screening pilot study in India and to explore wider market opportunities in the country.
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Commenting on the placing, Feedback chief executive Tom Oakley said: "This transformational financing round will enable Feedback to capitalise on the enormous opportunities ahead of it and is recognition of the incredible strides that we have taken over the last two and a half years in order to position the company at this juncture.
“With the launch of Bleepa, CareLocker and our Bleepa Box technology we have revitalised Feedback as a company and set a new course that will see us as one of the leaders of the technological revolution in healthcare. We are a company with big ambitions and the ability to deliver against those ambitions."
In a separate statement, Feedback announced its results for the year to end-May 2021, which showed a drop in revenue to £0.29mln from £0.45mln and an widening of operating losses to £2.06mln from £1.42mln. The results reflected the company’s planned move away from legacy products and the expansion of headcount to accelerate growth.
Cash stood at of £2.22mln as at 31 May 2021, up from £0.73mln a year earlier.
Feedback said its Bleepa clinical image-based communication platform is now installed in five sites across four NHS trusts, with one of the Trusts converting to a contract during the year.
In September, Bleepa was awarded a place on the NHS national AI procurement framework. The Bleepa AI module enables clinicians to include third-party AI tools to assist with the diagnostic interpretation of medical imaging studies such as X-rays, CT scans and MRIs.
Since the period-end, the company has also launched CareLocker, a patient-centric cloud architecture that supports Bleepa's functionality.
"The company made significant progress during the period - increasing both Bleepa's functionality and routes to market, laying the foundations to deliver strategic commercial opportunities - and, importantly, generating initial revenues for the platform, highlighting commercial viability within the UK and beyond,” commented Oakley.