Medtech CardieX has successfully ruled off a $4.33 million placement to fast track the commercialisation of the company’s dual blood pressure and arterial health monitoring technology, the CONNEQT Pulse.

CardieX (ASX:CDX) has been strongly backed by several institutional investors, including one of Australia’s leading investment managers Regal Funds Management.

Led by C2 Ventures, the investment vehicle of CEO Craig Cooper and chairman Niall Cairns, the placement was strongly supported by a mix of other Australia-based institutions, family offices and sophisticated investors. MST Capital Markets was the lead manager to the Placement.

Existing shareholders will also have the opportunity to top up their holdings in CardieX at the same attractive 30c-per-share price – a 14.3% discount to the last closing price – in a share purchase plan (SPP) that aims to boost the coffers by up to a further $1 million.

The placement includes a one-for-three free-attaching option exercisable at 45 cents within 12 months.

Equities research house, MST Access, sees plenty of upside potential in CardieX, recently placing a hefty $1.50 valuation on the company – more than four times the current share price.

MST’s strong ‘buy’ recommendation came following the company’s submission of a clearance application to the US Food and Drug Administration (FDA) for its world first dual blood pressure and arterial health monitor, the CONNEQT Pulse.

Subject to FDA clearance, the Pulse will be the world’s first cloud-connected, customisable, multi-use arterial health monitor to include CardieX subsidiary ATCOR’s “gold standard” SphygmoCor central aortic blood pressure technology – developed by CardieX’s subsidiary, ATCOR.

 

Significant growth potential

Blue Ocean Equities, which initiated coverage on the company in December with a target valuation of $1.60, highlighted CardieX’s “early-stage growth potential and the impending nature of the FDA clearance process for the new product suite”.

MST analyst Chris Kallos is also a strong believer in the company’s significant growth potential, saying the FDA’s recent classification of the CONNEQT app as a Medical Device Data System paves the way for the launch of several consumer-facing products over the next six months.

“The app will link all CONNEQT products in a new digital ecosystem based on devices using ATCOR’s SphygmoCor technology,” Kallos said.

The fresh cash injection places CardieX in a strong position to accelerate and capitalise on its new product launches.

 

Consumer-focused

The impending FDA approval of the Pulse will allow clinicians, patients and consumers alike to gain advanced insights into cardiovascular health beyond traditional blood pressure measurements, thanks to a series of patented and trademarked heart and vascular health biometrics which are incorporated into the monitor.

The ability to provide unique, and medically reliable data and health information, backed by FDA clearance, will be a key differentiating feature for the CONNEQT brand and its products.

CardieX Group CEO Craig Cooper says the Pulse introduces a game-changing opportunity to make a significant global health impact on the world’s largest killer – cardiovascular disease.

“By combining a full suite of arterial health parameters into a simple to use, affordable device, patients and clinicians alike will now be able to better identify arterial disease at an earlier stage – setting the foundation for maximum impact on global health outcomes,” he says.

 

This article was developed in collaboration with CardieX, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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