Feedback is making two acquisitions and raising £300,000.
Cambridge Computing Imaging (CCI) and TexRAD are both in the medical imaging sector and will cost £473,900 - £26,400 in cash and the rest in shares.
CCI provides software enabling the use of medical images in treatment and diagnostics. The Cadran image platform can access images from all types of digital imaging equipment. TexRAD has worked with CCI and it has developed a quantitative tool for researching diagnosis and treatment response of cancer. The technology helps to highlight coarser features that help in the assessment of tumours. The company believes this is the only commercial technology that analyses image texture.
Both businesses generate revenues and make small losses. CCI generates recurring revenues from customer agreements. A version of TexRADís technology for clinical trials will be launched by the end of this year but it will take time for revenues to build up.
The £300,000 subscription at 1.25p a share is at a 62% premium to the previous dayís closing market price. The share price subsequently rose 0.28p to 1.05p. Tom Charlton, Trevor Brown and Roy Ruffler have subscribed for the shares. Charlton is one of the vendors of CCI and he has also lent the company £189,000, which will be swapped for a loan to Feedback. Brown will own 26% of the enlarged share capital and Charlton 24.5%.
The strategy is to develop Feedback into a medical imaging tools company. The additional cash will be used to fund development of the companyís products and to invest in sales and marketing.
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