MedPal AI (AIM:MPAL) told investors, following movements in its share price and shares trading volumes, that no equity fundraising has been agreed and none is planned.
The AI-native digital health and pharmacy group said its New Health private prescription clinic dispensed more than 2,300 orders in a single day on Monday 5 October, worth approximately £0.3m in total order value.
As at 6 October, it held cash, debtors and stock of approximately £6.36m, comprising cash balances of approximately £3.39m, VAT of roughly £1.40m relating mainly to its August and September VAT returns, NHS prescription income of approximately £0.36m for September due as an advance payment on 9 October, estimated manufacturer rebates of approximately £0.59m on GLP-1 medication bought in September and October, and medication stock at cost of approximately £0.62m.
Net proceeds from the £5m placing completed on 24 September are being applied principally to acquire stock to meet growth in orders, as set out in its announcement of 21 September.
MedPal has received one indicative term sheet from a non-bank lender for an £8m facility, and said discussions continue with UK clearing banks and specialist lenders over a facility secured on the group's receivables. The board intends to negotiate terms with each party before choosing which option to pursue, and cautioned there is no certainty a facility will be agreed or as to its final terms.
On customer economics, MedPal said New Health spends money acquiring each new customer through marketing and introductory pricing on their first order, a discounting practice it described as standard among leading digital weight management providers, but that acquisition spend is discretionary and expensed as incurred.
From the second order onwards there is no acquisition cost, and the company said repeat orders at every cycle have generated a positive margin after the cost of medication since July 2026, with that margin increasing from the second order onwards.
A general meeting is being called after the share allotment authorities granted at the company's annual general meeting on 30 March were exhausted, to allow warrants to be issued to Clear Capital Markets as announced on 6 October and to restore standard authorities for potential future fundraising or acquisition-related share issuance.
"We recently raised £5 million, hold cash, near cash and stock of approximately £6.4 million and have no plans to raise equity," said Jason Drummond, founder and chief executive, adding that the general meeting "is housekeeping, restoring the normal share authorities we need to operate the company."