ImpediMed Raises US$15M with SWK Funding to Boost Commercialisation Efforts

ImpediMed’s Strategic Capital Raise

ImpediMed Limited (ASX: IPD), a Brisbane-based medical technology company, has announced a significant capital injection through a US$15 million growth facility arranged with SWK Funding LLC. This five-year agreement is designed to provide the company with the financial flexibility necessary to accelerate the commercialisation of its SOZO Digital Health Platform, a bioimpedance spectroscopy-based technology that is FDA-cleared and CE-marked for multiple clinical indications.

The facility is structured in two tranches: an immediate US$10 million drawdown and a conditional US$5 million tranche contingent on meeting fiscal year 2025 sales targets. This staged approach aligns funding availability with performance milestones, underscoring a disciplined growth strategy.

Balancing Growth and Shareholder Value

ImpediMed’s board, led by Chair Christine Emmanuel-Donnelly, emphasised the importance of this funding solution in preserving shareholder value while enabling scale. The facility includes the issuance of warrants exercisable at a price of $0.05139, reflecting the volume-weighted average price of the company’s shares prior to the announcement. This structure limits dilution compared to traditional equity raises, a strategic move to maintain investor confidence.

Managing Director Dr Parmjot Bains highlighted the partnership with SWK Funding LLC as a vote of confidence in both the company’s technology and its commercial trajectory. SWK’s expertise in healthcare financing and flexible capital solutions positions ImpediMed well to navigate the competitive medical technology landscape.

SOZO Platform: A Growth Catalyst

The SOZO Digital Health Platform is at the core of ImpediMed’s growth ambitions. Leveraging bioimpedance spectroscopy, SOZO offers clinicians a non-invasive, objective tool to assess fluid and tissue composition, with applications in lymphoedema, heart failure, and malnutrition. The platform’s inclusion in the NCCN Clinical Practice Guidelines for oncology survivorship screening further validates its clinical relevance and market potential.

With the new capital facility, ImpediMed aims to expand its commercial footprint, particularly in the US and Australian markets, and enhance its SaaS subscription model. This funding runway provides the company with the resources to execute on its sales and marketing strategies while maintaining operational momentum.

Financial Terms and Covenants

The facility carries an interest rate tied to the Secured Overnight Financing Rate plus a margin, resulting in an effective cash IRR of 15.8% to maturity. An initial interest-only period of 24 months (extendable to 36 months upon meeting tranche two conditions) is followed by straight-line amortisation with a 40% balloon payment at maturity. The loan is secured by a first-ranking charge over all assets of ImpediMed and its subsidiaries, with covenants including maintaining a minimum unrestricted cash balance and revenue performance tests.

Armentum Partners acted as the exclusive financial advisor, underscoring the transaction’s strategic importance and complexity.

Looking Ahead

This capital facility marks a pivotal moment for ImpediMed as it seeks to transition from a promising medical technology innovator to a commercially scaled enterprise. The partnership with SWK Funding LLC not only provides financial resources but also signals market confidence in the SOZO platform’s disruptive potential in digital health diagnostics.