Shares of HeartSciences get a bump from announcement of non-dilutive financing
On Friday, September 13, quotes on Heart Test Laboratories (doing business as HeartSciences), which is developing AI-powered technology for early detection of heart disease, surged almost 9% on the Nasdaq. This came after the company announced that it had secured $1.9 million in non-dilutive financing to extend its cash runway ahead of upcoming FDA submissions.
Details
On Friday, HeartSciences stock jumped 8.96% to $3.00 per share on the Nasdaq. Still, it is off more than 82% since the beginning of the year and more than 96% over the last 12 months.
The Friday gains came on two announcements. On Thursday, the company reported that it had signed a new loan note for $1.9 million with an 18-month maturity, which follows a recent 12-month extension of a $500,000 loan note. Overall, HeartSciences has extended its capital runway by $2.4 million since late August, achieving this with non-dilutive capital, noted CEO Andrew Simpson in the press release.
HeartSciences is developing AI-ECG diagnostic solutions to be made available on either a hardware agnostic cloud-based platform or its proprietary device. In another press release on Thursday, the company announced its plan to submit the results of research on its cloud platform and ECG device to the FDA in 2025, seeking validation from regulators.
About the company
HeartSciences seeks to compete for a share of the ECG market, which CEO Simpson believes is set to reach $25 billion a year. Millions of ECGs are performed every week, and the company’s mission is to improve health care by making ECGs a more valuable cardiac screening tool. Its platform provides information on various heart diseases and clinical protocols, while its ECG device utilizes proprietary signal-processing technology.
Currently, the company is not making money: In the fiscal-2025 first quarter (ended July 31), it reported no revenue.
Analyst recommendations
According to MarketWatch, the two analysts who cover the company recommend buying the stock. The average target price is $13.50 per share, indicating upside of more than 300% versus the September 13 close.
