Renalytix (AIM:RENX) plans to raise approximately £9.5 million gross through a placing, subscription and retail offer, pricing new shares at 6p, a 44.6% premium to the last closing price of 4.15p.
The AIM-listed diagnostics company, which develops artificial intelligence-based kidney disease testing, said the funds will support a newly signed multi-year US collaboration agreement to make its kidneyintelX.dkd test available through a partner's electronic ordering system.
The partner's connectivity platform reaches roughly half of US physicians and hospitals, and patients will be able to access its 2,000 patient service centres and 6,000 phlebotomists for blood draws.
The companies are targeting 25,000 kidneyintelX.dkd tests in 2027, with ordering expected to go live in the first quarter, subject to interface development and commercial training.
Heights Capital has agreed to convert its entire outstanding debt into equity at the issue price, and will not sell those shares for six months.
Five directors, including chief executive James McCullough and Christopher Mills, intend to participate in the placing, contributing roughly £260,849 through 4.35 million new shares.
Preliminary unaudited revenue for the year ended 30 June was approximately $3 million, achieved alongside a significant workforce and cost reduction.
Renalytix also completed a laboratory relocation in April that lifted testing capacity more than 3.5 times, expected to save over $2.6 million on a net present value basis over five years.
News Intelligence what this means for the company
Renalytix is raising £9.5m at a 44.6% premium to fund rollout of a US testing partnership that reaches roughly half of US physicians and hospitals, with a target of 25,000 tests by 2027. The raise also eliminates Heights Capital debt through equity conversion, and comes after the company completed a laboratory relocation in April that increased testing capacity more than 3.5 times—a move expected to save over $2.6m on a net present value basis over five years.
The raise funds a material distribution partnership with significant physician reach, and the debt-to-equity conversion removes a liability while aligning Heights Capital with shareholder interests. Against this, the company generated only ~$3m in revenue in the year ended 30 June, so the partnership's ability to drive adoption toward the 25,000-test 2027 target will be critical to justify the capital raise and the expanded testing capacity.
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