Enlitic, Inc. (ASX: ENL) announced a binding Memorandum of Understanding (MOU) with GE HealthCare, potentially generating up to A$50 million in revenue over the next five years. Under the MOU, Enlitic’s subsidiary, Laitek, will provide migration capacity to GE HealthCare, with GE HealthCare prepaying US$2 million for Laitek’s services, contingent on Enlitic securing A$10 million in external funding. The deal builds on Enlitic’s existing collaboration with GE HealthCare for its Genesis Cloud Product Suite.
To meet the funding condition of the MOU, Enlitic has secured firm commitments from new and existing institutional and sophisticated investors to raise A$10 million through a two-tranche placement of new Chess Depositary Interests (CDIs) at A$0.04 per CDI. The first tranche aims to raise approximately A$5.8 million, while the second tranche targets around A$4.2 million, subject to securityholder approval. Participants in the placement will also be offered options.
Michael Sistenich, CEO of Enlitic, expressed enthusiasm about the collaboration, highlighting the company’s mission to unlock the value of healthcare imaging data and support a transition to cloud infrastructure. He also acknowledged investor support, stating that the funding will enhance product offerings and capitalize on growth opportunities.
The funds raised through the placement are earmarked for research and development (A$2.7 million), quality and regulatory compliance (A$0.4 million), strategic development (A$0.3 million), sales and marketing (A$2.4 million), customer service (A$1.3 million), corporate expenses (A$1.2 million), working capital (A$0.7 million), and transaction costs (A$1.0 million). Enlitic anticipates achieving operational cash flow break-even by the end of CY25.
The indicative timetable includes settlement of the first tranche of placement securities on May 9, 2025, and allotment on May 12, 2025. The AGM to approve the second tranche and new options is scheduled for June 2025.
