EDX Medical Group - Acquisition of Hutano Diagnostics Ltd

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English law by virtue of the European (Withdrawal) Act 2018, as amended.  On publication of this announcement via a regulatory information service, this information is considered to be in the public domain.

Group Expansion/Acquisition of Hutano Diagnostics Limited

EDX Medical to develop breakthrough range of digital point-of-care tests for multiple diseases

EDX Medical Group Plc · EDX

27 September 2023

EDX Medical Group PLC ("EDX Medical", the "Company") or the "Group"), which develops innovative digital diagnostic products and services for the personalised treatment for cancer, heart disease and infectious diseases, today announces the expansion of the Group through the acquisition of the entire issued share capital of Hutano Diagnostics Limited ("Hutano").

The initial consideration will be met by the issue of 9,090,909 new ordinary shares of 1p each in the Company at a price of 11p per share ("Initial Consideration Shares").  Up to 1,818,182 additional consideration shares will be issued to the vendors on achievement of certain commercial milestones.

The acquisition will enable EDX Medical Group to accelerate and expand its point-of-care testing capabilities with a range of innovative tests capable of accurately measuring a combination of multiple disease markers on a single device within minutes. The new, miniaturised tests are expected to enable the identification of up to 10 disease markers simultaneously.

These innovative new 'point of care' tests will be used to identify early signs of cancer, infections, and cardio-vascular conditions and can be carried out by health professionals at the point-of-care, wherever they work, without delays and the costs associated with laboratory processing. Multiple assays can be combined on a single smartphone-readable device supporting real-time clinical decision-making and leading to better outcomes for patients.

The tests represent a major improvement over lateral flow test technology with multiple disease markers readable faster and at lower cost than laboratory assays. The new test device will contain an array of ultra-sensitive nano-scale 'mini-tests', each mini-test replacing a traditional lateral flow or laboratory test. Accuracy, speed and security is further enhanced by the ability to read and interpret the results using smartphone camera technology, setting new standards for 'point-of-care' clinical testing.

Initial products have focused on the detection, characterisation and quantification of infectious diseases such as fever, sepsis and the differentiation of bacterial vs viral infections.

The range of tests that will be produced by the Group will combine Hutano technology with EDX Medical smart-phone reader expertise and reagents and test formats designed by Torax Biosciences Limited, which was acquired by the Group earlier in the year.

Professor Sir Chris Evans, OBE, founder of EDX Medical, said: "We are tremendously excited by the prospect of making the most advanced point-of-care tests available for the benefit of patients everywhere.  This is a great joint endeavour by scientists at Oxford and Cambridge. Hutano has the ambition and technology to develop truly unique tests which, when combined with EDX chemistry and smartphone expertise, will generate game-changing new digital diagnostic products."

Dr Mike Hudson, chief executive of EDX Medical, commented: "The combined expertise and resources of the group puts us in a unique position to fast-track the introduction of a number of clinically important products and establish a new 'standard' in point-of-care testing worldwide."

Hutano Diagnostics Ltd Founder and CEO, Atherton Mutombwera, said: "Joining forces with EDX Medical Group PLC opens up a world of possibilities. It gives us access to the resources, expertise, and global reach necessary to usher in the age of digital point-of-care diagnostics. Together, we will be able to bring our innovations to a much broader audience and drive positive change in the healthcare landscape." 

Hutano will continue to operate from its laboratory in Oxford, where it has an established team of highly experienced scientists and collaborators at the University of Oxford. The company was founded in 2018 by Atherton Mutombwera and joined by Professor William James of Oxford University and others to disrupt the lateral flow test marketplace through innovative technology.

EDX Medical will integrate its efforts with Hutano and Torax Biosciences Ltd, to establish a point-of-care innovation team, led by Atherton Mutombwera, reporting to Group CEO, Dr Mike Hudson.

Admission of the Initial Consideration Shares and Total Voting Rights

Application has been made for the Initial Consideration Shares to be admitted in the Aquis Stock Exchange ("Admission") and it is expected that Admission will take place on 2 October 2023.

The Initial Consideration Shares will rank pari passu in all respects with the existing ordinary share capital of the Company.

In accordance with the Financial Conduct Authority's Disclosure and Transparency Rules, the Company hereby announces that following the Subscription, it has 300,965,909 Ordinary Shares in issue, each share carrying the right to one vote.

The above figure of 300,965,909 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

The directors of EDX Medical accept responsibility for the contents of this announcement.

Contacts:

Notes for Editors:

Point-of-Care Testing encompasses a range of technologies, which are amenable to use outside of a testing laboratory. They are typically lower cost and provide a fast, reliable result although traditionally less detailed than a laboratory test.

Advances in technology and materials, of which Hutano and EDX Medical are pioneers, are creating opportunities to deliver high performance point of care tests aligned with the demand for cost-effective rapid clinical testing.

About EDX Medical Group PLC (www.edxmedical.co.uk)

EDX Medical Group plc develops innovative digital diagnostic products and services, enabling cost effective and timely delivery of personalised treatment for cancer, heart disease, and infectious diseases. The company is listed on the AQSE Growth Market (TIDM: EDX).

EDX Medical was founded by Professor Sir Christopher Evans, OBE, a medical and life sciences entrepreneur with more than 30 years of experience, together with CEO, Dr Mike Hudson.

By translating clinical insights into pragmatic solutions combining advanced biological and digital technologies, EDX Medical seeks to cost-effectively improve the detection and characterisation of disease in order to personalise treatment in a timely fashion. Early disease detection and biologically-based personal treatment optimisation is considered to be the most impactful way of reducing deaths and lowering the cost of healthcare globally.

EDX Medical Group operates a molecular biology and diagnostics laboratory in Cambridge, UK, and a 100%-owned subsidiary "Torax Biosciences Ltd" (www.toraxbiosciences.co.uk) in Ireland. 

EDX Medical, provides testing and genomic sequencing services, undertakes quality assurance, conducts research & development (R&D) and has established expertise in the design, development, validation and sourcing of diagnostic testing solutions to ISO 13485. Key laboratory tests performed by the Company have been accredited to ISO 15189 by the United Kingdom Accreditation Service (UKAS).

About Hutano

Hutano Diagnostics Ltd is developing an innovative, quantitative, multiplex Point of Care Testing Platform. The Platform enables multiple biomarker detection and quantification on the same device. Hutano's intellectual property covers a range of target recognition elements including antibodies and novel synthetic elements enabling both improved performance and quantification. A robust pipeline of new products has been established with a focus on providing clinically useful data in real time.