Avingtrans participates in £12.9m fundraise by Adaptix

Energy, medical and industrial technology company Avingtrans announced its £2.5m participation in a £12.9m fundraise by emerging medtech company Adaptix on Wednesday.

The AIM-traded firm said Adaptix's focus was on transforming radiology, by allowing low-cost, low-dose 3D portable imaging.

It said it had developed a number of novel technologies and imaging approaches in relation to digital tomosynthesis (DT).

At the core of Adaptix's technology is the 'Flat Panel X-ray Source' (FPS), which Avingtrans said consists of a monoblock containing an array of individually controlled x-ray emitters combined with a high-voltage power supply.

In its latest round of funding, Adaptix was raising up to £12.9m of new funds, including £2.5m in cash from Avingtrans.

As a result, Avingtrans would own about 5.9% of the total issued share capital of Adaptix, after the closing of the fund raise.

Avingtrans, through its majority-owned subsidiary Magnetica (MNA), said it intended to collaborate with Adaptix to develop a “disruptive business offering”.

It said the offering would bring together low-cost 3D imaging in the form of MNA's cryogen-free MRI and Adaptix's DT, to allow fusing of image data, giving enhanced low-cost diagnostic capability, initially for orthopaedic imaging.

The target markets included around 28,000 US sites focused on minor injuries, and private orthopaedic practices.

Avingtrans said the purpose of the collaboration would be to create a broader offering to customers than was delivered by each business alone, and ultimately to bring together low-cost 3D MRI, x-ray and potentially ultrasound, in a solution which could address a “significant proportion” of all medical and veterinary imaging procedures.

In the year ended 31 March, Adaptix made a loss after tax of £0.8m.

“We are excited by the prospect of Magnetica working with the team at Adaptix, to our mutual benefit,” said chief executive officer Steve McQuillan.

“As fellow travellers on parallel disruptive medical imaging paths, we believe that working together will deliver cost and market synergies for both businesses to enhance potential shareholder value, through better quality and flexible multi-modal imaging, enhancing the end customer experience.”

At the close on Wednesday, shares in Avingtrans were flat at 440p.