Brisbane, Australia-based public company ResApp, which creates smartphone apps for the diagnosis and management of respiratory diseases, announced last week that it has received firm commitments from institutional and sophisticated investors to raise $5 million.
The funds raised will be used to accelerate European commercialization and for general working capital. The placement received strong support from institutional and sophisticated investors. Under the placement, ResApp will issue 25,000,000 new ordinary shares at an issue price of 20 cents per share.
The company also announced on 18 February that it has successfully completed functional testing of both handheld and wearable device prototypes received from UK-based medical device companies, Avanti Med Limited and OSI Electronics.
The Android-based, ruggedized handheld device is a low-cost option, complementary to smartphones, for using ResApp’s respiratory disease diagnosis apps in specific in-person clinical environments. The wearable monitor provides an easily worn, unobtrusive platform for up to three days of continuous monitoring of patients with chronic diseases such as chronic obstructive pulmonary disease and asthma.
On 20 February, the Australian Therapeutics Goods Administration (TGA) also approved ResApp’s smartphone application, ResAppDx-EU version 2, as a Class IIa medical device and it is now listed on the Australian Register of Therapeutic Goods (ARTG). The app diagnoses respiratory disease in both adults and children.
THE LARGER TREND
Last November, ResApp entered a non-binding Memorandum of Understanding (MoU) with Australia-based telehealth software platform startup Coviu to integrate ResApp’s acute respiratory diagnostic test, ResAppDx-EU into Coviu’s browser-based telehealth platform.
Back in August 2018, ResApp signed a deal with the US Department of Defense to join in the development of mobile applications that will help determine the mission-readiness of American military personnel, MobiHealthNews reported.
ON THE RECORD
“In response to a rapidly growing commercial pipeline, we will now accelerate our path to revenue by expanding our team on the ground in Europe at a greater pace. A stronger balance sheet also strengthens our negotiating position as we enter into deals with commercial partners. With a number of major milestones expected during the next six months, we are very excited by the company’s trajectory,” said Tony Keating, CEO & Managing Director, ResApp in a statement.
Roger Aston, Chairman of ResApp added, “We are extremely pleased to have received strong demand for the placement, including from our existing major shareholders. We also welcome a number of new institutional investors to our share register in what will be a transformative year for the company.”