EMV Capital (AIM:EMVC) portfolio company ProAxsis is raising new funds, targeting £800,000, as it seeks to support its commercial expansion and clinical research.
It comes as ProAxsis, which has proprietary protease-targeted technology and the NEATstik platform which addresses unmet needs in chronic respiratory disease diagnostics, meanwhile, highlighted a 92% rise in revenue in 2024, up to £470,000.
It narrowed losses significantly to £718,000 thanks to a 40% reduction in staff costs and a 28% reduction in overall operating costs.
Amidst a growing sales pipeline, which provisionally stands at £650,000 for 2025 so far, the company is now looking to strengthen its market presence.
At the same time, it is advancing key partnerships including a research collaboration with Imperial College London, which will see a clinical study in Chronic Obstructive Pulmonary Disease (COPD), and, separately it also has research tie-ups with Boehringer Ingelheim, Sanofi, and the University of Dundee.
Backed by Innovate UK grant funds, ProAxsis is advancing NEATStik with a prototype anticipated by April.
ProAxsis has landed a series of grant funds – including a £333,000 Innovate UK SMART Grant, a £165,000 grant from LifeArc, and also has a £900,000 multi-year Precision Medicine Consortium grant.
"During 2024, ProAxsis made significant progress in stabilising the business platform, advancing its commercial development and progressing its clinical trials plans for the COPD space,” EMV chief executive Ilian Iliev said in a statement.
“Through our value creation services programme, EMV Capital helped ProAxsis evolve to a leaner and more focused business.
“The company is in a good position to enter the next stage of its development.”
Today’s equity funding, meanwhile, will be backed by EMV Capital which will invest to maintain its 88.5% stake.
The share subscriptions will be made by third-party existing and new shareholders syndicated by EMV, according to Monday’s statement.
EMV noted that it’s estimated fair value of its holding in ProAxsis was £8 million, plus a further £800,000 held via managed funds.
“The current fundraise is aimed at delivering critical clinical milestones, commercial traction, and significant future value creation and we look forward to continuing to work alongside ProAxsis to achieve these,” Iliev added.