Artificial intelligence and medical technology company Echo IQ announced firm commitments to raise approximately $7.1 million.
The funds were raised through an institutional placement at 15 cents per share, receiving robust support from both new and existing investors.
The capital raised will primarily be allocated towards key company initiatives.
Echo IQ plans to use $4.7 million for commercialisation activities related to its Aortic Stenosis and Heart Failure AI solutions.
Additionally, $1 million will be directed towards ongoing product development, with a focus on the same AI solutions.
Commenting on the placement, Andrew Grover, executive chair of Echo IQ, stated, "We are delighted with the support of our placement from our existing shareholders and to welcome several new institutional shareholders to our register at such an exciting stage of the company's phase."
"Proceeds from the placement will see Echo IQ progress significant commercialisation activities for the company’s aortic stenosis and heart failure AI solutions."
A further $250,000 will be utilised to cover regulatory costs, including FDA applications, and $200,000 will address costs tied to the company's clinical trial program.
The balance of $1 million is earmarked for general working capital and overall placement costs.
Ord Minnett acted as lead manager for the placement, which involved issuing 47,366,667 new ordinary fully paid shares.
The shares will be issued under the company's available placement capacity under ASX Listing Rule 7.1A, with trading to commence on Sept. 13.