HeartSciences Closes Non-Dilutive Financing to Increase its Cash Runaway Ahead of Upcoming FDA Submission
Rhea-AI Summary
HeartSciences (NASDAQ: HSCS), an AI-powered medical technology company focusing on early heart disease detection through ECG/EKG transformation, has secured $1.9 million in net proceeds through a non-dilutive financing. This unsecured loan note has an 18-month maturity. Additionally, the company recently extended a $500,000 loan note to September 2025. CEO Andrew Simpson highlighted that these financial moves have extended the company's capital runway by $2.4 million since late August, providing significant opportunities to achieve valuable commercial milestones. The financing comes ahead of upcoming FDA submissions, positioning HeartSciences for potential growth in the medical technology sector.
Positive
- Secured $1.9 million in non-dilutive financing
- Extended $500,000 loan note to September 2025
- Increased cash runway by $2.4 million
- Upcoming FDA submissions indicate potential product approval
- Non-dilutive nature of financing preserves shareholder value
Negative
- Taking on additional debt with new loan note
- Reliance on external financing may indicate cash flow challenges
News Market Reaction
On the day this news was published, HSCS declined 1.06%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Southlake, TX, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Heart Test Laboratories, Inc. d/b/a HeartSciences (NASDAQ: HSCS; HSCSW) (“HeartSciences” or the “Company”), an artificial intelligence (AI)-powered medical technology company focused on transforming ECGs/EKGs to save lives through earlier detection of heart disease, today announced the close of a non-dilutive financing, with
Andrew Simpson, CEO of HeartSciences, said, “We have extended our capital runway by
About HeartSciences
Heart Test Laboratories, Inc. d/b/a HeartSciences is a medical technology company focused on applying innovative AI-based technology to an ECG (also known as an EKG) to expand and improve an ECG's clinical utility. Millions of ECGs are performed every week and the Company's objective is to improve healthcare by making it a far more valuable cardiac screening tool, particularly in frontline or point-of-care clinical settings. HeartSciences has one of the largest libraries of AI-ECG algorithms and is developing AI-ECG solutions to be made available on either a hardware agnostic cloud-based platform or its proprietary MyoVista® wavECG™ device, to help identify cardiovascular disease in any care setting worldwide in a manner to best suit different care providers. HeartSciences' first product candidate for FDA clearance, the MyoVista® wavECG™, or the MyoVista®, is a resting 12-lead ECG that is also designed to provide diagnostic information related to cardiac dysfunction which has traditionally only been available through the use of cardiac imaging. The MyoVista® also provides conventional ECG information in the same test.
For more information, please visit: https://heartsciences.com/. X: @HeartSciences
Safe Harbor Statement
This announcement 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. These forward-looking statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are relating to the Company's future financial and operating performance. All statements, other than statements of historical facts, included herein are "forward-looking statements" including, among other things, statements about HeartSciences' beliefs and expectations. These statements are based on current expectations, assumptions and uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. The expectations reflected in these forward-looking statements involve significant assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Potential risks and uncertainties include, but are not limited to, risks discussed in HeartSciences' Annual Report on Form 10-K for the fiscal year ended April 30, 2024, filed with the U.S. Securities and Exchange Commission (the "SEC") on July 29, 2024 and in HeartSciences' other filings with the SEC at www.sec.gov. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Contacts:
HeartSciences
Gene Gephart
+1-682-244-2578
info@heartsciences.com
Investors
Gilmartin Group
Vivian Cervantes
investorrelations@heartsciences.com
FAQ
How much non-dilutive financing did HeartSciences (HSCS) secure in September 2024?
What is the maturity date of HeartSciences' (HSCS) new unsecured loan note?
How much has HeartSciences (HSCS) extended its capital runway since late August 2024?
What upcoming milestone is HeartSciences (HSCS) preparing for with this financing?
