One ASX healthcare stock is catching the eye on Thursday with a particularly strong gain.
That stock is Imricor Medical Systems Inc (ASX: IMR), which is a leading developer of innovative MRI-compatible medical devices that can be used to carry out MRI guided cardiac catheter ablation procedures.
At the time of writing, its shares are up 11% to $1.57.
This means that Imricor Medical Systems shares are now up a massive 200% since this time last year.
Image source: Getty Images
Why is this ASX healthcare stock rocketing?
Investors have responded positively to news that the company has received firm commitments for a placement to new and existing institutional and sophisticated investors to raise $70 million.
According to the release, the ASX healthcare stock is raising the funds through the issue of 49,645,392 new CHESS Depositary Interests (CDIs) at an issue price of $1.41 per new CDI.
This was in line with where its shares were trading before their trading halt, which appears to indicate that demand was very strong for this placement.
Why is it raising funds?
The release notes that the funds raised from the placement, together with its existing cash balance, will be used to support the company's growth strategy.
This includes growing its installed base and expanding indications in Europe, expanding commercial operations into key markets, such as the USA and Middle East, and funding ongoing research, development, and regulatory efforts.
The ASX healthcare stock expects to have cash reserves of approximately $87.3 million (US$55.0 million) after costs following completion of the placement. Management believes that this leaves it well-positioned for continued growth and operational success in 2025 and beyond.
Imricor Medical Systems' chair and CEO, Steve Wedan, was pleased with the success of the placement. He commented:
2025 is a year full of meaningful catalysts and groundbreaking milestones. With this raise, we have a balance sheet that is bolstered to not only achieve these milestones, but to also drive well past them. We are in a great position to deliver on the promise of real-time MRI guidance for medical interventions, and we are more energised than ever to make it happen.
Index inclusion
It has been a big month for the ASX healthcare stock.
As well as this good news, the company was given a boost recently by S&P Dow Jones Indices.
It revealed that the company's shares will be added to the All Ordinaries index on 24 March following the quarterly rebalance.
