Spectral MD Holdings Ltd is to delist from AIM and shift to Nasdaq through a merger with a SPAC vehicle that values the wound assessment specialist at a huge premium to its current UK-listed value.
At present, Spectral’s market cap is around £38mln but the deal with Rosecliff Advisors values it at US$170mln (£136mln) or 101p a share, a 260% uplift to its current share price.
Spectral MD added the shift will also give access to new shareholders, sources of capital and the US government, currently its major customer.
Up to this point, the company has received US$125mln in grant funding from US agencies and said it wants to be ideally positioned for future federal contracts, particularly for burn assessments using its DeepView AI technology.
Trials of the AI-based product are ongoing across the US and Spectral MD added it expects to receive a "significant" contract for DeepView’s commercialisation.
As part of the Rosecliff transaction, Spectral will receive gross proceeds of US$20mln comprised of a placing and US$4.5mln held by the SPAC.
Completion is expected by the third quarter of this year and will be accompanied by a name change to Spectral AI.
Wensheng Fan, Spectral’s managing director, said: "This transaction is an excellent strategic move for Spectral MD.
“The Nasdaq listing will ensure we are well positioned to capitalize on US federal procurement contracts, our planned FDA and CE mark submissions in 2023 and 2024, and our commercialisation roadmap for burn, DFU, 3-D wound size measurement."