MedPal AI plc (AIM:MPAL), the digital health and artificial intelligence company, has raised £3 million through a placing of new shares to fund some ambitious expansion plans.
The investment round, arranged by OAK Securities as sole broker, was supported by new institutional investors and will be used primarily to scale the company's private weight-loss clinic, which operates on a GLP-1 platform, the fastest-growing segment of UK private healthcare.
GLP-1 refers to glucagon-like peptide-1, a class of drugs including Ozempic and Wegovy that suppress appetite and have driven a surge in demand for medically supervised weight-loss services.
Around £1.3 million of the proceeds will be directed at marketing and patient acquisition for MedPal.clinic, with the company noting that strong sales to date have been achieved without any marketing spend.
A further £800,000 will support working capital as NHS dispensing volumes hit a record 41,600 items in March, while £500,000 will fund senior commercial, clinical and operational hires.
The remainder covers capital expenditure to complete robotic dispensing capacity at the company's Runcorn hub and corporate costs.
Chief executive Jason Drummond said the fundraising would allow the company to convert a number of material commercial conversations currently underway and build on the momentum established over the past 12 months.
In the update, it was revealed that OAK Securities is joining Clear Capital Markets as joint broker following the placing, with the appointment bringing additional institutional distribution capability.