Australian medical technology company, LBT Innovations (ASX:LBT) has secured $4 million in funding from the South Australian Government.
The funding is part of a jobs and innovation initiative by the South Australian Government that will support LBT to continue developing its artificial intelligence technology platform.
LBT was founded and remains headquartered in Adelaide.
Its technology uses machine learning and intelligent imaging. The company's completed 10,000 patient global clinical trial has resulted in the only FDA cleared instrument and has secured a portfolio of patents.
"This funding comes at a critical time for us as an early revenue company where future product development is necessary to retain our leading edge position in our market," said the company in a statement.
The funding is designed to assist LBT take advantage of the market opportunity to extend its platform technology by recruiting 16 full time Adelaide based staff over the next 2 years.
The funding will be provided in the form of a low interest loan facility. Drawdowns of $1 million are subject to operational milestones with a further $1.5 million by December 2018 and the same amount by December 2019. Until the last drawdown, there will be no repayments of principal or interest, with interest accrued and capitalised. With the last drawdown, the facility becomes a three-year fixed principal and interest term loan. Repayments will then be made quarterly until the Facility is repaid in around December 2022.
The Facility is subject to formal legal documentation which is now underway and expected to be executed in the near term.
“LBT’s expansion in South Australia is a job-delivering win for the state and its life sciences sector. Fostering a vibrant digital health ecosystem is an important part of transitioning South Australia’s economy to knowledge-intensive, high-value jobs," said South Australian Premier Jay Weatherill.
"The company’s new APAS Independence instrument will help deliver the State Government’s plan to increase global exports of locally made hi-tech systems. Innovative companies like LBT are driving growth, sustainability and diversification of our economy.”
According to CEO and managing director, Brent Barnes, “We are very grateful for the continued support and $4m of funding from the South Australian Government. The low interest, long term structure of this Facility similar to venture debt funding, is highly attractive. We have established a highly skilled team who are PhD qualified in the areas of science, statistics and AI technology. This new funding will enable us to continue to engage world class people in the areas critical to LBT’s future development, and build on our existing centre of excellence."