Medicalgorithmics, the developer of globally innovative AI algorithms and an ECG analysis platform, will reduce its debt by more than PLN 16 million. The company’s Extraordinary General Meeting approved the issuance of more than 500,000 new shares at a price of PLN 33 per share. The shares will be acquired by Biofund Capital Management in exchange for cancelling liabilities arising from a loan granted by the fund in 2024.
The transaction will be completed without any cash payment. Shareholder approval represents significant progress in the process of converting the loan liabilities under an offer presented to the company by Biofund in January this year.
In practical terms, Biofund will invest PLN 16 million in Medicalgorithmics at a share price approximately 20% above the current market price.
“The loan we provided in 2024 enabled Medicalgorithmics to complete a comprehensive transformation of its business model. As a result, the company now offers a highly advanced ECG analysis solution based on proprietary AI algorithms. Biofund’s decision to convert the loan reflects our confidence in the company and our belief in its continued success, particularly in the further expansion of its ECG solutions and the commercialisation of VCAST technology. The portfolio of research and development projects continues to grow, while the reduction in debt will allow the company to allocate more funds to their development,” said Professor Paul Lewicki, co-founder of Biofund, a renowned scientist and one of the pioneers of data mining.
Under an agreement concluded in April, Biofund waived its right to receive a 3% commission on revenue generated by new customers. The fund also reduced the interest rate on the loan from 18.5% to 14%.
The introduction of more favourable repayment terms and the planned conversion of the loan into shares are both part of Biofund’s offer to Medicalgorithmics.
“The conversion of the loan will significantly improve our balance sheet and increase positive cash flows in the coming quarters. More funds will remain within the company, enabling us to accelerate the implementation of our projects, particularly the commercialisation of VCAST and the launch of the FDA certification process. This is a positive development not only for the company but also for its shareholders,” said Michał Zapora, a member of the Management Board of Medicalgorithmics.
The company has ambitious plans for the coming quarters. Medicalgorithmics intends to submit an application for FDA certification of VCAST in the second half of this year. In the meantime, the innovative technology is expected to generate its first revenue in markets where it is already available.
Medicalgorithmics is also continuing work on two strategic research projects aimed at expanding the clinical and commercial use of artificial intelligence in cardiac monitoring: AI VESPER and GIMLET.
Disclaimer: The information contained in this publication is provided solely for informational purposes. It does not constitute financial advice or any other form of professional advice. The information is general in nature and is not addressed to any specific recipient. Independent professional advice should be obtained before using this information for any purpose.
Source: managerplus.pl
