QT Imaging Holdings Announces Completion of Business Combination with GigCapital5
- Innovative body imaging systems using low frequency sound waves
- Expected NASDAQ trading under the ticker symbol 'QTI' on March 5, 2024
- Global medical imaging market worth approximately $40 billion annually
- Global cancer screening market expected to reach $472 billion by 2033
- QT Imaging received $17.8 million in financial support from the U.S. NIH
- QT Imaging Breast Acoustic CT™ Scanner offers high-resolution 3D images with patient comfort and safety
- Commercialization partnership with major medical equipment provider
- None.
The completion of the business combination between QT Imaging Holdings and GigCapital5 marks a significant milestone in the medical imaging industry. The unique technology developed by QT Imaging, which harnesses low frequency sound waves for body imaging, presents a considerable advancement in the field. This technology, particularly the QT Imaging Breast Acoustic CT™ Scanner, has been granted FDA clearance as an adjunct to mammography, indicating its potential to enhance breast cancer detection and diagnosis. With a focus on patient comfort and safety, the system's ability to produce high-resolution 3D images without breast compression or radiation exposure represents a disruptive innovation in the market.
From a research perspective, the implications of this technology are substantial. The high resolution, sensitivity, specificity and predictive values of the imaging system, combined with its cost-effectiveness, may result in increased adoption rates in hospitals and clinics. Furthermore, the system's capability to consistently image dense breast tissue or implants could lead to earlier and more accurate diagnoses for a broader range of patients. This is particularly relevant given the global medical imaging market's estimated value of $40 billion and the projected growth of the cancer screening market.
Considering the financial support from the NIH and private investors, QT Imaging's technology appears well-vetted, potentially facilitating its acceptance by the medical community. The partnership with a major medical equipment provider could further accelerate commercialization efforts, enhancing market penetration and shareholder value.
The medical imaging market is a rapidly growing sector, with a current estimated worldwide value of $40 billion and a CAGR of 8% for breast cancer detection technologies. QT Imaging's entry into the public market, through its business combination with GigCapital5, positions the company to capitalize on this growth. The market opportunity for their novel imaging technology is underscored by the growing demand for non-invasive and patient-centric diagnostic tools.
The strategic partnership with a leading medical equipment provider, along with the anticipated NASDAQ listing under the ticker 'QTI', may attract investor attention and provide QT Imaging with the capital necessary to scale operations and expand market reach. Given the competitive landscape, QT Imaging's differentiation in providing a safer, more comfortable and potentially more accurate imaging solution could disrupt existing imaging modalities and capture significant market share.
Long-term, the company's focus on leveraging artificial intelligence and smart physics in medical imaging suggests a commitment to innovation that could sustain growth. Investors will likely monitor the company's ability to navigate the challenges of fundraising and growing as a micro-cap company, as well as its execution of commercialization strategies post-public offering.
The financial implications of QT Imaging's business combination with GigCapital5 and its subsequent NASDAQ listing are multifaceted. The nearly $17.8 million in funding from the NIH and private investments since QT Imaging's inception in 2014 is a strong endorsement of the company's technology and market potential. This level of support suggests confidence in the company's ability to generate a return on investment through its innovative imaging solutions.
As a publicly traded entity, QT Imaging will be under increased scrutiny regarding its financial performance. The company's ability to effectively manage costs while scaling up production and sales will be critical to its success. Additionally, the partnership with a major medical equipment provider could provide both financial and strategic benefits, including expanded distribution channels and increased credibility in the marketplace.
Investors will be interested in the company's revenue growth, profit margins and market share gains post-IPO. The long-term financial health of QT Imaging will depend on its ability to maintain technological leadership, secure additional FDA clearances and effectively compete in the global medical imaging market.
Combined Company’s Innovative Body Imaging Scanning Systems Using Low Frequency Sound Waves Provide Critical Solutions for Detection, Diagnosis, and Treatment of Disease
QT Imaging Holdings Expected to Begin Trading on NASDAQ Under Ticker Symbol “QTI” on March 5, 2024
Doctors and hospitals are increasingly turning to medical imaging to screen for and diagnose cancer, support and monitor ongoing cancer treatment (drugs, radiation, and surgery), and offer non-invasive surgical options for patients. This has resulted in a major market opportunity—the annual worldwide medical imaging market currently is estimated to be worth approximately
QT Imaging, with the support of nearly
The QT Imaging Breast Acoustic CT™ Scanner, with its already granted FDA clearance as adjunct to mammography, sets a new standard in breast imaging excellence. Unlike traditional mammography, this state-of-the-art system offers numerous key advantages to a patient-centric approach. By eliminating uncomfortable breast compression, radiation exposure, and the need for contrast agents or injections, this innovative system prioritizes patient comfort and safety while delivering high-quality, high-resolution 3D images. Also, in overcoming the limitations of traditional methods, the QT Imaging scanner ensures consistent and reproducible image quality for patients with dense breast tissue or implants, backed by rigorous validation from the National Institutes of Health. Those differentiating and state-of-the-art characteristics have already attracted the attention of and led to a commercialization partnership with one of the world’s major medical equipment providers, as QTI Imaging recently announced.
Dr. John Klock, Chief Executive Officer and Founder of QT Imaging, said, “The completion of our business combination with GigCapital5 and emergence as a publicly-traded company is a landmark achievement for QT Imaging, and one that we would not have reached without the hard work and focus of our dedicated employees and the support of our partners at GigCapital5, more so in this very difficult time for fund raising and growing micro-cap companies. By introducing the first body-safe imaging technology into the marketplace, we are creating disruptive innovation, a dedication to using technology, as well as software, artificial intelligence, and smart physics, to improve medical imaging and thus healthcare quality and access. As a public company, we plan to stay committed to building value for shareholders by continuing to address issues presented by conventional imaging technologies with our accurate, safe, less expensive, easily deployable imaging solutions.”
Dr. Avi Katz, Founding Managing Partner of GigCapital Global and Executive Chairman of the Board of GigCapital5, said, “The GigCapital team is very proud to have closed our fifth business combination since inception in 2017, GigCapital5 with QT Imaging. We are pleased to continue to support QT Imaging’s journey as a publicly held company, as part of its Board of Directors and other functions as the company enters its next phase of innovation and growth. This combination is yet again a successful demonstration of our Private-to-Public Equity (PPE)™ methodology, but, as importantly, of our commitment to supporting companies in the medical device space, with a clear purpose of improving the global health outcomes, and delivering solutions that are safe, affordable, accessible, and centered on the patient’s experience.”
Advisors
Brown Rudnick LLP is serving as legal counsel, and BPM is serving as auditor to QT Imaging. William Blair is serving as Capital Markets Advisor, DLA Piper LLP (US) is serving as legal counsel, and BPM LLP is serving as auditors to GigCapital5. Proskauer Rose LLP is serving as legal counsel to William Blair. Exit Strategy Partners, LLC introduced the parties and advised QT Imaging in the transaction.
About QT Imaging
QT Imaging Holdings, Inc. is a medical device company engaged in the research, development, and commercialization of innovative body imaging systems using low frequency sound waves. QT Imaging strives to improve global health outcomes. Its strategy is predicated upon the fact that medical imaging is critical to the detection, diagnosis, and treatment of disease and that it should be safe, affordable, accessible, and centered on the patient’s experience. For more information on QT Imaging please visit the company’s website at www.qtimaging.com.
About GigCapital5
GigCapital5, Inc. is a Private-to-Public Equity (PPE)™ company, also known as a blank check company or special purpose acquisition company (SPAC), focusing on the technology, media and telecommunications (TMT) and sustainable industries. It was sponsored by GigAcquisitions5, LLC, which was founded by GigFounders, LLC, each a member entity of GigCapital Global, and formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding QT Imaging’s management team’s expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the future, including possible business combinations, revenue growth and financial performance, product expansion and services. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on our current expectations and beliefs made by the management of QT Imaging in light of their respective experience and their perception of historical trends, current conditions and expected future developments and their potential effects on QT Imaging as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting QT Imaging will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including regulatory approvals, product and service acceptance, and that QT Imaging will have sufficient capital to operate as anticipated. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respect from those projected in these forward-looking statements. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of QT Imaging’s (and its predecessor, GigCapital5, Inc.) filings with the SEC, and in its current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to QT Imaging as of the date hereof, and QT Imaging assume no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
1See, Fortune Business Insight, Medical Imaging Market Size, Share & COVID-19 Impact Analysis, Type (Magnetic Resonance Imaging, Computer Tomography, X-ray, Ultrasound, and Molecular Imaging), By Application (Cardiology, Neurology, Orthopedics, Gynecology, Oncology, and Others), by End User (Hospitals, Specialty Clinics, Diagnostic Imaging Centers, and Others), and Regional Forecast, 2021-2028 (Jan. 2022), available at https://www.fortunebusinessinsights.com/industry-reports/medical-imagingequipment-market-100382.
2 See, Market.us, Global Cancer Screening Market by Type, by Application (Medical, and Biology), by Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecasts 2023-2033 (Jan. 2023), available at https://market.us/report/cancer-screening-market/.
3 See, ReportLinker, Global Breast Imaging Technologies Market to Reach
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For GigCapital5:
ICR
Brian Ruby
Brian.ruby@icrinc.com
Source: GigCapital5
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