REG - Deltex Med Grp PLC - Trading update and suspension of trading on AIM

Deltex MedicalAnnouncement

26/06/2023 07:00

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RNS Number : 8691D  Deltex Medical Group PLC  26 June 2023

The information contained within this announcement was deemed by the Company
to constitute inside information as stipulated under the UK Market Abuse
Regulation

 

26 June 2023

 

Deltex Medical Group plc

("Deltex Medical" or the "Group")

 

Trading update and

suspension of trading of shares on AIM pending clarification of financial
position

 

On 25 April 2023, Deltex Medical announced, among other things, that the Group
had entered into an agreement with Imperialise Limited, a company controlled
by Mr. Nigel Keen, Chairman of Deltex Medical and its largest shareholder, for
a bridging loan of £0.25 million to help fund working capital associated with
accelerated production of the Group's new generation TrueVue monitor.  This
loan is fully drawn.

 

Despite this additional financing, the new monitor has not yet been launched
on the market, although the necessary steps to complete the technical file
which would enable the new monitor to be launched are expected to be finalised
soon - external testing has been completed and the Group has completed all
steps required of it, including its internal testing, and is awaiting the
third party review of its safety test report to complete the product technical
file. It is a regulatory requirement for the Group to complete a technical
file before such a product can be sold.

 

On 30 March 2023 in its annual results announcement, Deltex Medical provided
information on, among other things, a national tender for haemodynamic
monitoring equipment in conjunction with one of its Latin American
distributors which involved the current generation TrueVue monitor. Contrary
to the Board's expectation, no significant further information on this
national tender has been received to date and a material order has not been
forthcoming as expected.

 

In addition to this, the Group has experienced weaker than expected trading in
this current quarter, which the Board believes is due to customers waiting for
the new monitor to be available.

 

As a result of these unexpected delays and events, the Group's cashflows have
come under pressure, with the result that working capital projections now
indicate a need for additional funding by mid-July.  The Group's cash balance
is currently approximately £180,000 and all loan facilities are fully
drawn.  Accordingly, the Group has been exploring additional sources of
funding, including discussions with its lenders and major creditors, including
Imperialise Limited, to provide additional working capital but these have not
been successful. The Board of the Group continues to explore its options and
pending clarification of its financial position, Deltex Medical has requested
that its shares be suspended from trading on AIM.

 

The Group will make further announcements as soon as possible.

 

For further information, please contact:

 

 Deltex Medical Group plc                                        01243 774 837

 Nigel Keen, Chairman                                            investorinfo@Deltexmedical.com
 Andy Mears, Chief Executive
 Natalie Wettler, Group Finance Director

 Allenby Capital Limited - Nominated Adviser                     020 3328 5656

& Broker

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)              info@allenbycapital.com
 Tony Quirke / Stefano Aquilino (Sales & Corporate Broking)

 

Notes for Editors

 

Deltex Medical's technology

 

Deltex Medical's TrueVue System uses proprietary haemodynamic monitoring
technology to assist clinicians to improve outcomes for patients as well as
increase throughput and capacity for hospitals.

 

Deltex Medical has invested over the long term to build a unique body of
peer-reviewed, published evidence from a substantial number of trials carried
out around the world. These studies demonstrate statistically significant
improvements in clinical outcomes providing benefits both to patients and to
the hospital systems by increasing patient throughput and expanding hospital
capacity.

 

The Group's flagship, world-leading, ultrasound-based oesophageal Doppler
monitoring ("ODM") is supported by 24 randomised control trials conducted on
anaesthetised patients. As a result, the primary application for ODM is
focussed on guiding therapy for patients undergoing elective surgery. The
Group will shortly launch a new, next generation monitor which will make the
use of the ODM technology more intuitive and provide augmented data on the
status of each patient.

 

Deltex Medical's engineers and scientists carried out successful research in
conjunction with the UK's National Physical Laboratory ("NPL"), which has
enabled the Group's 'gold standard' ODM technology to be extended and
developed so that it can be used completely non-invasively. This will
significantly expand the application of Deltex Medical's technology to
non-sedated patients. This new technological enhancement, which will be
released on the new next generation monitor, will substantially increase the
addressable market for the Group's haemodynamic monitoring technologies and is
complementary to the long-established ODM evidence base.

 

Deltex Medical's new non-invasive technology has potential applications for
use in a number of healthcare settings, including:

§ Accident & Emergency for the rapid triage of patients, including the
detection and diagnosis of sepsis;

§ in general wards to help facilitate a real-time, data-driven treatment
regime for patients whose condition might deteriorate rapidly; and

§ in critical care units to allow regular monitoring of patients post-surgery
who are no longer sedated or intubated.

 

One of the key opportunities for the Group is positioning this new,
non-invasive technology for use throughout the hospital. Deltex Medical's
haemodynamic monitoring technologies provide clinicians with beat-to-beat
real-time information on a patient's circulating blood volume and heart
function. This information is critical to enable clinicians to optimise both
fluid and drug delivery to patients.

 

Deltex Medical's business model is to drive the recurring revenues associated
with the sale of single-use disposable ODM probes which are used in the
TrueVue System and to complement these revenues with a new incremental revenue
stream to be derived from the Group's new non-invasive technology.

 

Both the existing single-use ODM probe and the new, non-invasive device will
connect to the same, next generation monitor which is due for launch in 2023.
Monitors are sold or, due to hospitals' often protracted procurement times for
capital items, loaned in order to encourage faster adoption of the Group's
technology.

 

Deltex Medical's customers

 

The principal users of Deltex Medical's products are currently anaesthetists
working in a hospital's operating theatre and intensivists working in ICUs.
This customer profile will change as the Group's new non-invasive technology
is adopted by the market. In the UK the Group sells directly to the NHS. In
the USA the Group sells directly to a range of hospital systems. The Group
also sells through distributors in more than 40 countries in the European
Union, Asia and the Americas.

 

Deltex Medical's objective

 

To see the adoption of Deltex Medical's next generation TrueVue System,
comprising both minimally invasive and non-invasive technologies, as the
standard of care in haemodynamic monitoring for all patients from new-born to
adult, awake or anaesthetised, across all hospital settings globally.

 

For further information please go to www.deltexmedical.com
(http://www.deltexmedical.com)

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