TIDMDEMG
RNS Number : 8691D
Deltex Medical Group PLC
26 June 2023
The information contained within this announcement was deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation
26 June 2023
Deltex Medical Group plc
("Deltex Medical" or the "Group")
Trading update and
suspension of trading of shares on AIM pending clarification of
financial position
On 25 April 2023, Deltex Medical announced, among other things,
that the Group had entered into an agreement with Imperialise
Limited, a company controlled by Mr. Nigel Keen, Chairman of Deltex
Medical and its largest shareholder, for a bridging loan of GBP0.25
million to help fund working capital associated with accelerated
production of the Group's new generation TrueVue monitor. This loan
is fully drawn.
Despite this additional financing, the new monitor has not yet
been launched on the market, although the necessary steps to
complete the technical file which would enable the new monitor to
be launched are expected to be finalised soon - external testing
has been completed and the Group has completed all steps required
of it, including its internal testing, and is awaiting the third
party review of its safety test report to complete the product
technical file. It is a regulatory requirement for the Group to
complete a technical file before such a product can be sold.
On 30 March 2023 in its annual results announcement, Deltex
Medical provided information on, among other things, a national
tender for haemodynamic monitoring equipment in conjunction with
one of its Latin American distributors which involved the current
generation TrueVue monitor. Contrary to the Board's expectation, no
significant further information on this national tender has been
received to date and a material order has not been forthcoming as
expected.
In addition to this, the Group has experienced weaker than
expected trading in this current quarter, which the Board believes
is due to customers waiting for the new monitor to be
available.
As a result of these unexpected delays and events, the Group's
cashflows have come under pressure, with the result that working
capital projections now indicate a need for additional funding by
mid-July. The Group's cash balance is currently approximately
GBP180,000 and all loan facilities are fully drawn. Accordingly,
the Group has been exploring additional sources of funding,
including discussions with its lenders and major creditors,
including Imperialise Limited, to provide additional working
capital but these have not been successful. The Board of the Group
continues to explore its options and pending clarification of its
financial position, Deltex Medical has requested that its shares be
suspended from trading on AIM.
The Group will make further announcements as soon as
possible.
For further information, please contact:
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman investorinfo@Deltexmedical.com
Andy Mears, Chief Executive
Natalie Wettler, Group Finance Director
Allenby Capital Limited - Nominated
Adviser
& Broker 020 3328 5656
Jeremy Porter / Vivek Bhardwaj (Corporate info@allenbycapital.com
Finance)
Tony Quirke / Stefano Aquilino (Sales
& Corporate Broking)
Notes for Editors
Deltex Medical's technology
Deltex Medical's TrueVue System uses proprietary haemodynamic
monitoring technology to assist clinicians to improve outcomes for
patients as well as increase throughput and capacity for
hospitals.
Deltex Medical has invested over the long term to build a unique
body of peer-reviewed, published evidence from a substantial number
of trials carried out around the world. These studies demonstrate
statistically significant improvements in clinical outcomes
providing benefits both to patients and to the hospital systems by
increasing patient throughput and expanding hospital capacity.
The Group's flagship, world-leading, ultrasound-based
oesophageal Doppler monitoring ("ODM") is supported by 24
randomised control trials conducted on anaesthetised patients. As a
result, the primary application for ODM is focussed on guiding
therapy for patients undergoing elective surgery. The Group will
shortly launch a new, next generation monitor which will make the
use of the ODM technology more intuitive and provide augmented data
on the status of each patient.
Deltex Medical's engineers and scientists carried out successful
research in conjunction with the UK's National Physical Laboratory
("NPL"), which has enabled the Group's 'gold standard' ODM
technology to be extended and developed so that it can be used
completely non-invasively. This will significantly expand the
application of Deltex Medical's technology to non-sedated patients.
This new technological enhancement, which will be released on the
new next generation monitor, will substantially increase the
addressable market for the Group's haemodynamic monitoring
technologies and is complementary to the long-established ODM
evidence base.
Deltex Medical's new non-invasive technology has potential
applications for use in a number of healthcare settings,
including:
-- Accident & Emergency for the rapid triage of patients,
including the detection and diagnosis of sepsis;
-- in general wards to help facilitate a real-time, data-driven
treatment regime for patients whose condition might deteriorate
rapidly; and
-- in critical care units to allow regular monitoring of
patients post-surgery who are no longer sedated or intubated.
One of the key opportunities for the Group is positioning this
new, non-invasive technology for use throughout the hospital.
Deltex Medical's haemodynamic monitoring technologies provide
clinicians with beat-to-beat real-time information on a patient's
circulating blood volume and heart function. This information is
critical to enable clinicians to optimise both fluid and drug
delivery to patients.
Deltex Medical's business model is to drive the recurring
revenues associated with the sale of single-use disposable ODM
probes which are used in the TrueVue System and to complement these
revenues with a new incremental revenue stream to be derived from
the Group's new non-invasive technology.
Both the existing single-use ODM probe and the new, non-invasive
device will connect to the same, next generation monitor which is
due for launch in 2023. Monitors are sold or, due to hospitals'
often protracted procurement times for capital items, loaned in
order to encourage faster adoption of the Group's technology.
Deltex Medical's customers
The principal users of Deltex Medical's products are currently
anaesthetists working in a hospital's operating theatre and
intensivists working in ICUs. This customer profile will change as
the Group's new non-invasive technology is adopted by the market.
In the UK the Group sells directly to the NHS. In the USA the Group
sells directly to a range of hospital systems. The Group also sells
through distributors in more than 40 countries in the European
Union, Asia and the Americas.
Deltex Medical's objective
To see the adoption of Deltex Medical's next generation TrueVue
System, comprising both minimally invasive and non-invasive
technologies, as the standard of care in haemodynamic monitoring
for all patients from new-born to adult, awake or anaesthetised,
across all hospital settings globally.
For further information please go to www.deltexmedical.com
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