Deltex Medical Group plc (AIM:DEMG) shares surged 20% to 0.9p on Thursday following a year-end update in which it announced revenues for 2022 would be ahead of last year.
The medical technology firm also told investors it has a “large advanced opportunity in the pipeline which if successful, could provide a further boost to revenue in the short term.”
“The business has been tightly managed and therefore operating costs are lower than originally anticipated,” it added, in a statement.
However, in order to fund the increased cash requirements associated with the unexpected delay in the launch of its “innovative, next-generation TrueVue monitor,” the company’s largest shareholder and chairman Nigel Keen has agreed to provide further cash support on “arm’s length commercial terms.”
As a result, the board has entered into an agreement with Imperialise Limited, a company controlled by Keen, for a loan of £250,000 to the existing £500,000 standby loan facility that was put in place and announced on 20 September and is now fully drawn down.
The interest rate on the facility remains at 8% per annum, and it is unsecured. The £0.75 million standby loan facility is repayable in full on or before 31 December 2023.