Shares in G Medical Innovations Holdings Ltd (ASX: GMV) are down 5 per cent to 50 cents in trade today after the group returned to the ASX boards following a $13.5 million capital raising.
G Medical Innovations operates in the digital and mobile health medical device space and issued 31.4 million new shares at 43 cents per share to sophisticated and institutional investors.
The business only listed in May 2017 and reports that it has already received U.S. FDA (regulatory) approval for its Prizma Smartphone Case.
According to the company the smartphone case has a variety of sensors that can help a user record their vital signs such as temperature, stress levels, or heart rate. After which the data can be stored online via a mobile app.
The company also reports it has developed a G Medical Patch (GMP) that also helps users measure vital signs to assist in diagnosing medical problems remotely.
Unfortunately, the company posted nothing in the way of revenues for the quarter ending September 30 2017 in delivering an operating cash outflow of $1.94 million for the quarter. However, after its recent capital raising it does reportedly have cash on hand of around $22.9 million to fund its commercialisation initiatives.
Given the lack of revenues it looks a speculative bet with plenty of risk to the downside.
