Avingtrans PLC (LON:AVG), which designs, manufactures and supplies critical components, modules, systems and associated services to the energy, medical and industrial sectors, has announced its £2.5m participation in a £12.9m fund raise by emerging medtech leader, Adaptix Ltd, based in Oxford, UK.
Adaptix’s focus is on transforming radiology, by allowing low-cost, low-dose 3D portable imaging. It has developed a number of novel technologies and imaging approaches in relation to Digital Tomosynthesis. At the core of Adaptix’s technology is the ‘Flat Panel X-ray Source’ which consists of a monoblock containing an array of individually controlled X-ray emitters combined with a high-voltage power supply.
In its latest round of funding, Adaptix is raising up to a total of £12.9m of new funds, including £2.5m in cash from Avingtrans. In return for the investment, Avingtrans will own approximately 5.9% of the total issued share capital of Adaptix, post the closing of the fund raise.
Avingtrans, through its majority owned-subsidiary Magnetica (“MNA”), intends to collaborate with Adaptix, to develop a disruptive business offering. This offering will bring together low-cost 3D imaging in the form of MNA’s Cryogen-free MRI and Adaptix’s DT, to allow fusing of the image data, giving enhanced low-cost diagnostic capability, initially for orthopaedic imaging. The target markets include some 28,000 US sites focused on minor injuries (urgent care) and private orthopaedic practices (private practices and ambulatory surgical centres).
The purpose of the collaboration is to create a broader offering to customers than is delivered by each business alone and ultimately to bring together low-cost 3D MRI, X-ray and potentially ultrasound, in a solution which can address a significant proportion of all medical and veterinary imaging procedures.
In the year to 31 March 2020, Adaptix made a loss after tax of £0.8m.
Mark Evans, CEO of Adaptix, said: “Our vision is to offer multi-modal 3D imaging to under-served medical markets in major economies focused on extremity imaging, which will be driven by a ‘Pay-per-Study’ business model. Our competitive advantage will be facilitated by: the low cost of the equipment, protected and enabled by proprietary technology; equipment that does not need high-cost rooms and installation; and portability that enables equipment to be cheaply redeployed and therefore, facilitates new service models. We believe that by working with Avingtrans and Magnetica, we will be able to deliver a unique proposition to the medical imaging market.”
Steve McQuillan, CEO of Avingtrans, commented: “We are excited by the prospect of Magnetica working with the team at Adaptix, to our mutual benefit. As fellow travellers on parallel disruptive medical imaging paths, we believe that working together will deliver cost and market synergies for both businesses to enhance potential shareholder value, through better quality and flexible multi-modal imaging, enhancing the end customer experience.”
