Australian-based bio-separations company Memphasys Limited (ASX: MEM) has significantly enhanced its balance sheet, with the company’s two largest shareholders committing a total of $3 million to the company and its plans.
Leading supporters Peters Investments Pty Ltd ($1.65m) and Non-Executive Director Andrew Goodall ($1.35m) have added significantly to the company’s coffers via the issue of Convertible Notes.
This funding will enable the company to complete a range of necessary tasks for the upgraded Felix device, ahead of the re-commencement of commercial sales discussions in early access markets during the later stages of the quarter ending September 2021.
These early markets are projected to conduct 1,200,000 fresh IVF cycles per annum by 2026 (having conducted 450,570 fresh IVF cycles in 2018).
Executive Chair, Alison Coutts, said the funding will also enable the company to advance the additional products currently being developed by the company in conjunction with the University of Newcastle.
In addition to the commercialisation of the Felix device, Memphasys is also developing a portfolio of novel artificial reproduction products for humans and animals, with global reproductive biology expert, Professor John Aitken, and his research team at the University of Newcastle
This product portfolio is focused on reproduction in both humans and animals and includes the next generation Felix device for human and wider animal market, in vitro diagnostics for human and animal semen quality and the development of proprietary long-life semen storage media.
Memphasys has confirmed, following positive outcomes of initial proof-of-concept studies on some of these projects, that clinical and market opportunity for these products has been established. As a result, resourcing has been expanded within Memphasys and the University of Newcastle research team led by Professor John Aitken to rapidly advance these products.
A prototype for one of its projects, the Stallion Fertility Test (at dismount), is now being developed, and is planned to be field tested during the racehorse breeding season starting in September 2021 in Australia.
Clinical field testing of the other products is planned for 2022.
Ms Coutts said the addressable market for these new products is significant, with the global animal artificial insemination industry alone estimated to reach US$2.5 billion by 2026.4
I am pleased with the support we have received from our two major shareholders via this capital raising. It is a significant vote of confidence in Memphasys and the technology that underlies our Felix device, providing us with the necessary funds to complete verification and validation activities on the updated Felix device and the commencement of commercialisation activities in early access markets,” Ms Coutts said:
“The funding will also further our work with Professor John Aitken’s research team at the University of Newcastle into our assisted reproduction product portfolio, including our most advanced product, the Stallion Fertility Test.
“I look forward to updating shareholders as we continue to progress towards commercialisation of our Felix device and these other products.”