Nemaura Medical Secures $20 Million Non-Dilutive Loan to Accelerate Business Growth

Rhea-AI Summary

Nemaura Medical (Nasdaq: NMRD) announced a significant financing milestone on February 11, 2021. The company secured a $20 million non-dilutive loan backed by its assets, increasing its cash reserves to over $34 million. This amount is substantially above its quarterly burn rate of $1.5 million, providing essential financial flexibility. CEO Dr. Faz Chowdhury highlighted that this financing will fuel the company's growth without diluting shareholder equity. Nemaura focuses on non-invasive diagnostic devices and has key products like sugarBEAT® and proBEAT™.

Positive

• Secured $20 million non-dilutive loan.
• Total cash increased to over $34 million, providing significant runway.
• Monthly burn rate is less than $1.5 million.

Negative

• None.

Loughborough, England, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Nemaura Medical, Inc. (Nasdaq: NMRD) (“Nemaura” or the “Company”), a medical technology company focused on developing and commercializing non-invasive wearable diagnostic devices and supporting personalized lifestyle coaching programs, announces it has secured a $20 million non-dilutive, non-convertible loan that was secured by Company assets. The loan does not include warrants or other equity securities.

“This loan significantly strengthens our financial position and brings our cash to more than $34M, far in excess of our current burn rate of less than $1.5M per quarter.Importantly, this financing does not dilute shareholders, yet still provides significant runway to accelerate our overall growth,” stated Dr. Faz Chowdhury, Nemaura’s CEO. “We appreciate the continued strong support from our lender, Chicago Venture Partners.”

About Nemaura Medical, Inc.

Nemaura Medical Inc. is a medical technology company developing and commercializing non-invasive wearable diagnostic devices.The Company is currently commercializing sugarBEAT^® and proBEAT^™.sugarBEAT^®, a CE mark approved Class IIb medical device, is a non-invasive and flexible continuous glucose monitor (CGM) providing actionable insights derived from real time glucose measurements and daily glucose trend data, which may help people with diabetes and pre-diabetes to better manage, reverse, and prevent the onset of diabetes.Nemaura has submitted a PMA (Premarket Approval Application) for sugarBEAT^® to the U.S. FDA.proBEAT^™ combines non-invasive glucose data processed using artificial intelligence and a digital healthcare subscription service and is expected to be launched in the U.S. as a general wellness product.

The Company sits at the intersection of the global Type 2 diabetes market that is expected to reach nearly $59 billion by 2025, the $50+ billion pre-diabetic market, and the wearable health-tech sector for weight loss and wellness applications that is estimated to reach $60 billion by 2023.

For more information, please visit www.NemauraMedical.com.

Cautionary Statement Regarding Forward-Looking Statements:

The statements in this press release that are not historical facts may constitute forward-looking statements that are based on current expectations and are subject to risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by such statements. Those risks and uncertainties include, but are not limited to, the launch of proBEAT^™ in the US, risks related to regulatory status and the failure of future development and preliminary marketing efforts, Nemaura’s ability to secure additional commercial partnering arrangements, risks and uncertainties relating to Nemaura and its partners’ ability to develop, market and sell proBEAT^™, the availability of substantial additional equity or debt capital to support its research, development and product commercialization activities, and the success of its research, development, regulatory approval, marketing and distribution plans and strategies, including those plans and strategies related to both proBEAT^™ digital health, and sugarBEAT^®. There can be no assurance that the company will be able to reach a part of or any of the global market for CGM with its products/services. The FDA reserves the right to re-evaluate their decision that proBEAT^™ qualifies as a general wellness product should it become aware of any issues such as skin irritation or other adverse events from the device, as well as any misuse impacting patient safety, and any other reason as the FDA may see fit at its discretion to determine the product does not fit the definition of a general wellness product. These and other risks and uncertainties are identified and described in more detail in Nemaura’s filings with the United States Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the most recently completed fiscal year, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Nemaura undertakes no obligation to publicly update or revise any forward-looking statements.

Contact:

Jules Abraham
CORE IR
917-885-7378
julesa@coreir.com

FAQ

What is the recent financing announcement from Nemaura Medical (NMRD)?

Nemaura Medical announced a $20 million non-dilutive loan on February 11, 2021.

How much cash does Nemaura Medical currently have after the loan?

After securing the loan, Nemaura Medical's cash reserves exceed $34 million.

What does the loan mean for Nemaura Medical shareholders?

The loan does not dilute shareholder equity, strengthening the company's financial position.

What is Nemaura Medical's quarterly burn rate?

Nemaura Medical's quarterly burn rate is less than $1.5 million.

What products is Nemaura Medical developing?

Nemaura Medical is developing non-invasive devices like sugarBEAT® and proBEAT™.