Chump change on favourable terms for Pro Medicus. Let's see if 4D Medical can make anything meaningful of this for the viability of their business.

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4DMedical secures $10m strategic investment from Pro Medicus

31 July 2025

Highlights

• Pro Medicus (ASX:PME), a leading global medical imaging software company, has invested $10m into 4DMedical

• This strategic investment will provide 4DMedical with the growth capital to accelerate its commercial pipeline for existing products while advancing CT:VQ™ towards regulatory clearance in the U.S.

• The investment is structured as a hybrid debt and equity loan that is non-dilutive if 4DMedical’s share price is rangebound, while also creating upside alignment between Pro Medicus and 4DMedical’s shareholders if the share price performs strongly over the two-year term

• The agreement also provides Pro Medicus with the option of distributing 4DMedical products on terms consistent with other distribution arrangements

Boy, this company sure knows how to kill off any momentum built up in the share price with a capital raising.

This is the second we have had within a few months.

The terms are generous to the institutional buyers not not great for existing shareholders (big discount to the prevailing market price of ~18%, 1 free attaching option with every 2 shares). Existing shareholders don't get an SPP btw.

The acquisition is of US-based Imbio, which is an early stage company which is touted as a "leader" in cardiothoracic imaging. Seems alright, but is this a case of juggling too many balls too early?

Following the stall at resistance in the 70s, we have had additional newsflow this week.

First, with the CT LVAS US FDA clearance on Monday, and then new SaaS contract wins to expand into Detroit and Michigan.

Shares are currently trading well above resistance, and if these levels can hold, will set up well to test the 52w highs over the coming weeks/months.

Nice win for the company which significantly increases coverage. Technically though, there has been a clear rejection from levels that have acted as support on prior pivots (so far anyway, we'll have to wait till the close), so this is probably as good as it gets until the next catalyst.

Trading has been halted this morning pending a capital raise, which wasn't too much of a surprise given they only have a few quarters of runway and the price has shot up in recent weeks.

The good news is it is happening in conjunction with a "material" commercial arrangement, so as long as the funds are in support of that expansion in revenues, it will eventually be a good development.

Since my last Straw from a couple of weeks ago, price action has continued to be bullish, aided by another positive announcement yesterday.

Price is getting closer to levels which will now act as resistance ($1.15-$1.50). Let's see if it has the legs to chomp through that.

It's been quite the run for 4DX on the back of their first significant SaaS contract announcement, approaching 3x in just a few weeks from the recent low under 30c near the recent highs.

While the market has been happy to extrapolate this development and the valuation looks mighty stretched given it is trading mostly on distant future potential, technically, the momentum has taken the shares above key resistance levels around the mid 70s where price broke down last year. Today's action looked dismal with the price plunging well below those levels (indicating a lack of follow through to sustain further gains), but the buyers have stepped up over the course of the session and pushed it back to support. If it can consolidate around these levels (and the company can back it up with further positive announcements), we could be off to the races again.

Disc.: Small position held IRL.