News blog
3D Diagnostic Imaging
- BY: Andrew Hore |
- POSTED: 27/10/2010 |
Tooth decay detection technology developer 3D Diagnostic Imaging is planning to move from Plus-quoted to Aim.
The company has signed distribution contracts with Patterson Dental, the largest dental products distributor in the US and Canada. Two orders for the core product and sensors, worth around $600,000, have already been shipped and by the end of December this figure could be approaching $1m. 3D Diagnostic Imaging will have to recruit technical support and training staff in North America.
That is part of the reason why 3D Diagnostic Imaging is raising £2.7m via a placing at 6p a share as part of its flotation on Aim. Cash is also required to finance the manufacture of the product and for working capital.
3D Diagnostic Imaging took on the technology developed by failed Aim-quoted company IDMoS, which ran out of money, in May 2008. IDMoS had invested the £9m it raised in developing the dental disease detection technology. The device, which became known as CarieScan PRO, was already fully developed and had gained medical approvals but had not been commercialised. The first commercial product was launched in the US earlier this month.
The handheld device can be used to monitor tooth decay. It looks like an electric toothbrush and uses a disposable sensor. The sensor is held against each tooth in turn and a tiny electrical current passed through that tooth. A reading is displayed on a screen. A tooth with healthy enamel will impede the electric current. If the current is not impeded as much then dental treatment can be prescribed in order to reverse the decay process if it is at an early stage. The device has approvals in Europe, the US and Canada. There have been distribution deals signed in the UK.
3D Diagnostic Imaging joined Plus-quoted on 21 April 2009. A share placing at 7p a share raised £200,000, which was equivalent to the expenses of the flotation. Scottish Enterprise, Evolve Capital and other investors converted £1.8m worth of loan notes at 4p a share. Scottish Enterprise currently owns 29.3% of £D Diagnostic Imaging and Evolve 41.2% but they will be diluted by the placing. A further £750,000 of loan notes will be converted at 4.5p a share.
The current share price on Plus-quoted is 12p, which values the company at £13m. The move to Aim should happen on 22 November. At the placing price of 6p a share, 3D Diagnostic Imaging will be valued at £10.2m.
House broker FinnCap forecasts sales of £1.76m in the year to June 2011, rising to £5.18m the following year. That should be enough for the company to reach profitability in 2011-12, although cash is expected to continue to flow out of the business until 2012-13. The forecast is based on the sale of 3,600 handpieces and 1.1m sensors in 2011-12.
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