CurveBeam AI, which has assembled an impressive register via its pre-IPO rounds, opened the books on an initial public offering yesterday.
The medical imaging business is looking to raise $25 million for a $153.7 million market capitalisation at listing. The offer is priced at 48¢ a share for a roughly 25 per cent float. Investor meetings began on Monday and the books would shut tomorrow. The company is slated to list on August 23.
CurveBeam combines weight-bearing CT imaging equipment with artificial intelligence to target improved assessments for orthopaedics and bone health. It has 170-odd devices deployed across the world with institutions such as US hospital chain Mayo Clinic.
It is cleared by the Food and Drug Administration in the United States, has 37 granted patents internationally (27 applied) and has a co-marketing and distribution agreement with NYSE-listed Stryker Corporation, according to a presentation being shown to potential investors.
Financials shared with fund managers said CurveBeam AI’s pro forma forecasts are for $11 million revenue and negative $15.3 million EBITDA for the 2023 financial year. It reported $7.2 million revenue and $5.9 million earnings in the 2021 financial year. It reckons it’s got a $10 billion-plus addressable market and would be able to hit gross margins as high as 90 per cent from its AI modules.
Potential backers were told while the COVID-19 pandemic had slowed sales, the partnership with Stryker’s foot and ankle division would start to grow revenue this calendar year, and reimbursement schemes for CT scans in the US and Germany would provide a tailwind to expansion.
The bulk of the IPO proceeds were earmarked for sales and marketing which would cost $11.3 million, followed by $4.1 million on research and development, $2 million on intellectual property costs and $4.4 million on working capital.
Bell Potter and Lodge Corporate are mandated on the IPO, and also led previous fundraising rounds.
Its existing investors include Andrew Forrest’s Tenmile, Brian Flannery’s family office Ilwella, and fund managers Firetrail, SG Hiscock, Frazis Capital, Karst Peak Capital and Acorn.
CurveBeam AI was created in April last year out of a merger between Melbourne University spin-off StraxCorp and US-based Curve Beam.
StraxCorp had built a diagnostic tool for assessing bone microstructure to aid in the identification of bone fragility. It already had FDA approval and Europe’s CE mark – and backing from Karst Peak, Flannery and Acorn. CurveBeam had developed low-radiation CT machines.
