Cambridge Cognition bids to raise £2.5m to target markets worth $700m
The brain health pioneer says the money will principally fund growth and general working capital and strengthen the balance sheet as the company "continues its profitable momentum." It is targeting global business potentially worth around $700 million.
Some directors intend to snap up shares worth around £66k. The company has specific targets to use the money raised to expand its sphere of influence.
Drilling down to specific expansion targets, it is set to broaden its technical and business development activities and expand its commercial team to support greater reach and management of key relationship.
Cambridge Cognition is developing digital health products to better understand, detect and treat conditions affecting brain health. Led by CEO Matthew Stork, its software products assess cognitive health in patients worldwide to improve clinical trial outcomes, identify and stratify patients early and improve global efficiency in pharmaceutical and healthcare industries.
The company's key focus is on improving the health of people around the world by delivering more effective brain health assessments and methods of administering them at home and in-clinic.
A diverse blue-chip customer base includes a number of global pharmaceutical companies, clinical research organisations and research and healthcare customers.
Over the course of 2023, Cambridge Cognition made considerable improvements in internal operations, introducing new cloud-based systems for operational management, people management, quality assurance and learning and training record-keeping.
The group has also spent the last year integrating and expanding its offering so that it is able to provide a combined platform across its portfolio enabling customers to choose the modules which fit their requirements.
It completed its restructuring following the acquisitions of eClinicalHealth Limited at the end of 2022 and Winterlight Labs Inc. at the start of 2023. In completing this restructuring, costs were reduced whilst maintaining a high level of client delivery and a strong customer focus, the company said.
In February the company strengthened its commercial leadership with the appointment of Alex Livingstone-Learmonth as Chief Commercial Officer.
The directors expect the combination of the Group's newly developed and acquired technologies in combination with the core CANTAB® technology and strengthened commercial leadership will bring new and larger sales opportunities.
Cambridge Cognition boasts a healthy pipeline of opportunities for 2024 and expects to recognise £9 million of revenue in 2024 from the contracted order book, including revenue recognised in the first quarter of 2024.
Despite the positive outlook, however, the company says it continues to experience longer lead times for contracting and several contract delays impacting on invoicing levels.
With performance reliant on timing of contracts, directors believe the fundraising is important to provide a strong balance sheet to enable the business to execute on its growth plans.
The share price was down almost eight per cent today to 41p.
