EMvision share price rockets 11% on $5 million pay day

Shares in the Australian medical device company shot higher today.

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A smiling woman looks at her computer laptop in her home with warm lights in the background feeling happy to see the EMvision share price rising

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Key points

  • The EMvision share price jumped as high as 11% today to $1.92
  • The company will receive a $5 million Modern Manufacturing Initiative grant from the Australian Government
  • The program provides businesses with funds to support projects, adopt new technologies, and improve manufacturing processes

The EMvision Medical Devices Ltd (ASX: EMV) share price rocketed today following news that the Australian Government will give the ASX company a multi-million dollar manufacturing grant.

Shares in the Australian medical device company finished the session at $1.82, up 5.2%. Earlier, the EMvision share price reached an intraday high of $1.92 — up 10.98%.

By comparison, the All Ordinaries Index (ASX: XAO) also travelled higher today to 7,426 points — up 1.03%.

EMvision receives Modern Manufacturing Initiative Grant

ASX investors snapped up EMvision shares on news today that the company has been successful in its application for the grant.

According to a market release, the Department of Industry, Science, Energy and Resources has awarded EMvision a Modern Manufacturing Initiative (MMI) grant.

Under the MMI Manufacturing Translation Stream program, EMvision will receive $5 million of non-dilutive cash funding.

This program provides businesses with funds to support projects, adopt new technologies, and improve manufacturing processes. EMvision stated that the grant is a matched funding program and remains subject to agreeing documentation and terms.

EMvision has not provided any details on how the company will use the funds. Management said it will advise the details in due course.

The company is developing a portable brain scanner to diagnose and monitor strokes in patients.

The department will contact EMvision to discuss the next steps.

EMvision share price summary

Although the EMvision share price accelerated today, it has been on a downhill trend. The shares have lost 37% over the past 12 months and are down 31% year to date.

On valuation grounds, EMvision has a market capitalisation of roughly $133.95 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended EMvision Medical Devices Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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