Technology company, Control Bionics Limited (Proposed ASX: CBL) are one of the latest medtech companies looking to list on the exchange next month. The company is looking to raise $15m by November 25 at an offer price of $0.60 per share, giving the company an indicative market capitalization at the offer price of $50m.
The company develops Assistive Technology (AT) which enables disabled individuals to communicate and control devices using neuroelectric signals. By using their patented Electromyography (EMG) signals, individuals with severe incapacities can use the company’s programs to operate smartphones, computers, tablets and electric wheelchairs without requiring eye tracking, keyboards, or joysticks.
The company’s newest product offering is the wearable NeuroNode 3 which sold its first unit last year, is an upgraded version from their 2017 model. The NeuroNode uses EMG signals to operate these electric devices, thereby reducing user fatigue and increasing communication speed. The NeuroNode is registered for use here by the Therapeutics Goods Association (TGA) and the Food and Drug Administration (FDA) in America.
The key markets for Control Bionics are Australia and Northern America, however, the company is looking to expand their reach in more states across America and begin entering the Japanese market. The company reports that each year, approximately 56,000 people are diagnosed with conditions which leave the individual with a high degree of physical incapacity such as MND, ALS, MS, and spinal cord injuries across Australia, USA, and Japan. At a unit price of around $20,000, there is a potential market opportunity of around $1.2B per year for the company.
At an offer price of $0.60, the company is not currently profitable, however, they have been able to significantly grow their revenue from $781,000 in FY19, to $3,099,000 in FY20, an increase of over 119%. Control Bionics have also seemingly not been drastically affected by COVID-19, with forecasts of the first quarter in FY2021 up 41% from the year prior. The company’s intended use of funds indicates a significant expansion plan with 43.7% of the funds raised ($6.55m) being put toward sales and marketing; and a further 20% ($3m) being allocated to Research and Development.
Control Bionics are proposed to list on the ASX on December 7 2020. The offer is underwritten and managed by Morgans Corporate Limited.
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