Enlitic Faces Shareholder Approval Risk Amid Critical A$10M Capital Raise

Strategic Capital Raise to Support Growth

Enlitic, Inc. (ASX: ENL), a healthcare technology company specialising in AI-driven medical imaging software, has announced a two-tranche institutional placement aiming to raise A$10 million. The capital raise is designed to fund critical growth initiatives including research and development, sales expansion, regulatory compliance, and the integration of its recent acquisition, Laitek.

The placement is structured with an initial tranche raising approximately A$5.8 million, to be issued under existing placement capacity, and a second tranche seeking around A$4.2 million, conditional on shareholder approval at the company’s upcoming annual general meeting (AGM) expected in June 2025. Participants in the placement will also be offered new unquoted options exercisable at A$0.05, subject to shareholder approval.

Leveraging the GE HealthCare Collaboration

A cornerstone of this equity raising is Enlitic’s binding Memorandum of Understanding (MOU) with GE HealthCare (GEHC), which positions Enlitic as a foundational collaborator in GEHC’s Genesis Cloud Product Suite. The MOU outlines a potential revenue opportunity of up to A$50 million over five years, with Enlitic committed to delivering AI-enabled data migration services to GEHC.

This collaboration is expected to generate between US$3 million to US$6 million annually in migration service revenue, contingent on the successful completion of the capital raise. GEHC has agreed to prepay US$2 million upon confirmation of Enlitic securing the A$10 million funding, underscoring the strategic importance of this partnership.

Robust Pipeline and Integration Progress

Since acquiring Laitek in October 2024, Enlitic has significantly expanded its migration services pipeline by over US$60 million, now exceeding US$70 million in opportunities over the next three years. The integration of Laitek’s data migration capabilities with Enlitic’s AI-powered Ensight 2.0 platform is driving enhanced product offerings and accelerating customer adoption.

Enlitic reports active engagement with over 60% of the global PACS OEM market, including major players such as Philips, Siemens, and FujiFILM. The company’s combined migration and data standardisation services are positioned as a differentiated offering that competitors find difficult to match, with over 80% of Laitek’s OEM partners and end users actively evaluating the Ensight suite.

Financial Outlook and Operational Milestones

Enlitic anticipates recognised revenue of US$9-11 million for calendar year 2025, supported by new contracts secured in the first quarter. The company is targeting operational cashflow break-even by the end of 2025, aided by cost synergies realised through integration efforts and ongoing efficiency initiatives.

The capital raised will be allocated across research and development, quality and regulatory compliance, strategic product development, sales and marketing expansion, customer service scaling, and general corporate costs. Enlitic’s management underscores the importance of this funding round to meet the conditions of the GEHC MOU and to sustain its growth trajectory.

Risks and Shareholder Considerations

While the equity raise and strategic partnership mark significant progress, Enlitic faces several risks. The second tranche of the placement and the issuance of new options are subject to shareholder approval, which is critical to satisfying the GEHC funding condition. Failure to secure approval could jeopardise anticipated revenues and raise going concern issues.

Investors should also consider dilution risks, as the placement will increase the total CDIs on issue by approximately 43%. Additionally, the company operates in a competitive and rapidly evolving AI healthcare market, with regulatory, integration, and market acceptance challenges.