4DMedical Ltd (ASX: 4DX) shares are having a very strong finish to the week.
In morning trade, the ASX tech stock is up 21% to a new record high of $2.55.
This means that the respiratory imaging technology company's shares are now up over 400% since the start of the year.
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Why is this ASX tech stock rocketing?
Investors have been scrambling to get hold of the company's shares this morning after it made another big announcement.
According to the release, the company has closed the 4DXOA option exercise period after 99.73% of these options were exercised.
The exercise of these options has significantly boosted its balance sheet strength, pulling in $22.6 million in proceeds.
The new funds generated from these exercised options, along with the recently announced $10 million strategic investment from Pro Medicus Ltd (ASX: PME), and the $6 million R&D Tax Incentive receipt, brings the company's pro forma cash balance to $45.5 million.
But this balance could be given another lift in the near term. The ASX tech stock notes that further opportunities for capital inflows exist via quoted options, ASX:4DXO. There are currently 22.1 million options outstanding with an exercise price of $1.365, which is significantly lower than its current share price. These options expire on 31 December and could add up to $30.2 million to the balance sheet.
Spending plans
Management notes that these new cash injections extend the funding runway for the company, ensuring it can execute its strategic and commercial priorities.
This includes the commercialisation and broad adoption of its CT:VQ product and the penetration of Academic Medical Centres and Health Systems, and Community and Radiology Networks, across the U.S. healthcare market, leveraging the reseller agreement with Philips.
In addition, the cash will support its research and product development, including post-FDA clearance CT:VQ studies, and broadening the applicable clinical applications with further evidence across the portfolio.
Commenting on the news, the ASX tech stock's managing director, CEO, and founder, Andreas Fouras, said:
September has been a great month for 4DMedical and our shareholders. Your strong support has secured the capital required to execute on our commercialisation plans, most notably relating to CT:VQ. We are working hard to put together the necessary ingredients for an incredibly successful RSNA 2025 at the end of November, and I look forward to keeping you informed of these wins ahead of that key event.
