4DMedical expands with Imbio acquisition and successful equity raise

Image credit: 4DMedical's LinkedIn

Respiratory imaging technology company 4DMedical Limited has officially inked a binding agreement for the acquisition of Imbio, a pioneering US-based medical technology company.

The deal, valued at an upfront purchase price of USD 25 million (AUD 38.5 million), is poised to revolutionise the diagnosis, treatment, and management of patients through the integration of artificial intelligence (AI) with standard-of-care CT scans.

Imbio’s approach utilises AI algorithms to transform conventional CT scans into a personalised medicine tool, showcasing 4DMedical’s commitment to advancing healthcare through innovative technologies.

The acquisition terms include a contingent earnout structure, with one tranche of up to USD 10 million in CY2024 and two tranches of up to USD 5 million each in CY2025, the ASX-listed said in a media release.

The earnout payments are conditional upon the accomplishment of key milestones, detailed in Schedule 1 of the Merger Agreement.

Shareholder approval will be sought for the issuance of new 4DMedical shares to settle any contingent earnout.

To facilitate the upfront cash component of the acquisition, 4DMedical has successfully raised AUD 35 million through a strategic placement.

Approximately 44.3 million new fully paid ordinary shares (New Shares) were issued under ASX Listing Rule 7.1 at an offer price of AUD 0.79 per Placement Offer Share, reflecting a 17.3 per cent discount to the last closing price on 6 December 2023, the last trading day before the placement.

Participants in the Placement will be granted one free attaching option (Option) for every two New Shares issued, offering additional value and aligning the interests of shareholders.

The Options, exercisable at AUD 1.365, will expire on 31 December 2025, pending ASX quotation requirements.

4DMedical Founder and CEO Andreas Fouras expressed his enthusiasm about the collaboration with the highly skilled and dedicated Imbio team.

He highlighted Imbio’s leading suite of AI solutions, emphasising their ability to derive life-changing insights from CT scans.

“Imbio’s marketleading suite of AI solutions provide life-changing insights from CT scans, and perfectly complement 4DMedical’s functional imaging technology,” the CEO noted.

He underscored the significance of the Imbio acquisition in enhancing the company’s capability to positively impact the respiratory health of Veterans, particularly those affected by toxic exposures during their service.

Founded in 2012, Imbio, a prominent medical imaging AI firm, is transforming the detection, diagnosis, and treatment of individuals with lung and cardiothoracic conditions.

Through the analysis of standard-of-care CT scans, physicians receive detailed information that enhances diagnostic precision and improves patient care outcomes.

This is achieved through the utilisation of Imbio’s visual and quantitative reports, optimising the overall healthcare process.