Deltex Medical (LON:DEMG) has confirmed it intends to raise up to £3mln through a combination of new convertible loans, a placing and an open offer.
Some £1.125mln will come from the loan notes, £1.115mln from the placing and up to £750,000 from an open offer. New shares will be issued at 4p. Chairman NIgel Keen also confirmed he will contribute £0.5mln to both the placing and loan note issue.
The loan note and open offer proceeds will help repay a £1mln convertible loan due this month to Amati VCT.
Deltex has been growing its US business to offset lower demand from the NHS for its blood flow monitoring systems and the money raised will boost US revenue run-rates from the end of 2016 and into the first quarter of 2017.
To boost cashflow from the NHS in the meantime Deltex expects to introduce a small number of additional third party products into the UK as well as new haemodynamic monitoring products.
Results from two major trials are also due in the middle of this year that will reinforce the clinical value of ODM during surgery, Deltex added.
Operating cash break-even is now expected during 2016 through a combination of US expansion, product development and international sales growth allied to increased cash generation from the UK, it said.