ResApp raises $7.5m

Medical tech company ResApp Health has announced a $7.5 million capital raising as it moves to commercialise its smartphone app, which aims to diagnose and manage respiratory diseases.

ResApp has issued 34 million shares at 22 cents each, with Morgans Corporate acting as lead manager to the placement.

In April, the company released positive preliminary results for its app.                       

The technology is based on machine learning algorithms that use sound to diagnose and measure the severity of respiratory conditions without the need for additional hardware.

ResApp said the proceeds would be used to strengthen the company’s balance sheet to allow it to invest in sales and marketing, expand clinical programs and investigate new uses for the technology.

“With the completion of Smartcough-C-2, the final stage of our headline acute diagnosis clinical program, due imminently, we can now build momentum and rapidly advance multiple projects in multiple markets,” managing director Tony Keating said.

“The funds raised this week will accelerate the commercialisation of ResAppDx in several continents, and, by investigating new ways our unique technology can be more broadly applicable, build on our position as the world’s leading digital health company focused on respiratory disease.”

Shares in ResApp were off 14.07 per cent at 23 cents each at 2pm AEDT.