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4DMedical Ltd (ASX: 4DX) shares are having a strong finish to the week.
In morning trade, the respiratory imaging technology company’s shares are up a massive 42% to 34 cents.
This follows the release of a big announcement from the ASX healthcare stock after the market close on Thursday.
What did the ASX healthcare stock announce?
Investors have been scrambling to buy 4DMedical’s shares this morning after it revealed a significant investment from health imaging giant Pro Medicus Ltd (ASX: PME).
According to the release, Pro Medicus will provide the ASX healthcare stock with $10 million via a facility agreement that includes security as collateral.
The release notes that this strategic investment will provide 4DMedical with growth capital to accelerate its commercial pipeline for existing products while advancing CT:VQ towards regulatory clearance in the United States.
What does 4DMedical do?
4DMedical is behind the patented XV Technology, which is a platform that dynamically quantifies ventilation throughout the lungs as patients breathe.
This technology underpins the company’s FDA-cleared XV Lung Ventilation Analysis Software (XV LVAS) and its CT LVAS, empowering physicians to detect and monitor regional airflow abnormalities with unparalleled sensitivity.
The company notes that its solutions integrate seamlessly into existing hospital infrastructure via its Software as a Service (SaaS) model, transforming routine imaging into powerful diagnostic tools.
What are the terms?
At maturity, the ASX healthcare stock will pay and/or issue the following to Pro Medicus:
(i) Cash equal to the higher of: a. $12.5m; and b. $10m x (4DX 10-day VWAP at maturity) / (4DX 10-day VWAP at execution), capped at $20m. plus (ii) 4DX shares equal to: ($10m x (4DX 10-day VWAP at maturity / 4DX 10-day VWAP at execution) – $20m) / 4DX 10-day VWAP at maturity.
Commenting on the deal, the ASX healthcare stock’s founder managing director and CEO, Andreas Fouras, said:
Pro Medicus is a global leader in healthcare, and we are thrilled to receive their support at this pivotal moment in our journey. This strategic investment places us in a very strong position to take CT:VQ to market once it is cleared by the FDA. 4D stands at a very exciting moment, with rapid growth in sites and scans month on month against a backdrop of falling costs.
Add to this the growing momentum in the Philips partnership, and the shortening timeline to expected FDA clearance of CT:VQ, we are set for extremely strong performance over the coming months.