Resonance Health raises $795k, appoints advisor

Resonance Health has announced the raising of $795,000 from a share purchase plan as well as the appointment of United States investment bank Montgomery Pacific Group as its US corporate advisors.
MPG is a boutique investment bank founded by individuals involved in the banking and life science industries with strong connections into healthcare communities in the US
Based in Irvine, California, and Bethesda, Maryland, MPG will assist Resonance Health in US-based strategic business development opportunities.
Activities to be conducted by MPG are directed towards securing long term value creation, including securing accelerated market penetration for Resonance Health's lead technology, FerriScan, which involves a magnetic resonance imaging scan followed by off-site processing of the images by Resonance using its patented method of extracting the liver iron concentration result.
The terms of engagement for MPG include a small cash component and up to around 833,333 shares, paid in tranches on achievement of agreed milestones, with additional fees and options payable on commercial terms upon completion of certain specified activities. An issue of 416,667 shares has been provided to MPG as the initial instalment of the retainer.
Resonance managing director James Williams said the company was aiming to increase its presence in the US.
"Strong US market penetration is an important stage in the commercial roll-out of our technology. We have already signed a memorandum of understanding with a major US radiology chain which complements the clinical programs we are running with Novartis and the Thalassemia Clinical Research Network," he said.
"MPG will aid in the strategic acceleration of this process, primarily focusing on commercial alliance opportunities."
The combination of the recent placement and closing of the share purchase plan results in the company having cash reserves of $2.4 million, according to Dr Williams.