Cambridge Cognition has raised £1.4m at 20p a share in order to complete the development of its NeuroVocalix and digital health products and speed up commercialisation of these products.
The neuroscience-based digital health company remains loss-making and finnCap hopes it can breakeven in 2021. Last year, the postponement of an order meant that revenues fell from £6.1m to £5m and that meant that the loss doubled to £3m.
Lower research and development spending should help overall costs to reduce, so profit improvement should be relatively rapid when compared with revenues.
Net cash is expected to fall from £900,000 to £700,000 in 2020 even after the placing cash is received.
This will depend on when projects commence. There is already £3.6m in the order book for 2020 and £870,000 for 2021. The CANTAB cognitive tests account for the biggest part of the order book, followed by digital and voice products, including telehealth testing product NeuroVocalix. The rest of the orders are for electronic clinical outcome assessment services (eCOA).
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