The EMvision Medical Devices Ltd (ASX: EMV) share price closed 13.2% higher today after the company made a funding announcement.
The EMvision share price finished off the trading session at $2.74 this afternoon.
Here's a wrap of where the funding will come from for the medical imaging technology provider, and why it may have moved the share price.
Image source: Getty Images
Australian Stroke Alliance wins bid
In today's release, EMvision advised that its commercial collaboration partner, the Australian Stroke Alliance (ASA), submitted a successful bid to the Stage 2 Medical Research Future Fund (MRFF) for a 5-year program to transform pre-hospital stroke care.
The MRFF stage 2 program was awarded $100 million from the federal government, with 40 million allocated to ASA.
Of the $40 million, ASA has advised EMVision that it will receive "$8 million of this non-dilutive cash funding in staged payments weighted to the earlier years of the program".
This poses the opportunity for EMvision to commercialise its medical imaging technology and work toward further developments.
Executive commentary on funding
Commenting on the ASA collaboration, EMvision CEO Dr Ron Weinberger said:
The ASA brings together an end-to-end medical program to save and improve the lives of patients of one of the most debilitating medical emergencies in the world. No such consortium exists internationally, and the ASA will become a template for not only managing stroke, but other medical emergencies.
The ASA leadership has worked tirelessly to put Australia centre stage in this global battle to save healthy lives and is to be congratulated. We are grateful to the Australian government for recognising this vision and awarding one of the largest medical research grants in Australian history.
ASA co-chief investigator and neurologist, Professor Geoffrey Donnan, added:
We are excited to be commencing this ground-breaking research program. Lightweight portable and affordable brain imaging is the next frontier in stroke care…"
EMvision share price snapshot
Despite falling 22.4% year-to-date, the EMvision share price has gained 20.1% over the previous 6-month period.
The company's market capitalisation is approximately $171.2 million, and 70.8 million shares are outstanding.
