Second time around, it raised 20m in a placing and open offer. As a result, the company has the cash for the next two years. Its Tri-Leaflet heart valve is funded up to commercialisation. But it will have to find further cash with which to launch the device. With no war chest for large acquisitions, unless it tries more fundraising, AorTech remains a possible takeover target.
Profitability remains years, rather than months, away.
This is not a stock with which to make a fast buck. But the products on which the company is staking its future are all unique. Elast-Eon could transform the medical devices industry. A distribution deal for continental Europe has been agreed and plans for the US and Japan are being reviewed. In February, we noted short term sell, long term hold when the shares were around 4.60.