MDxHealth seeks $40 million through share offering

IRVINE, CA, and HERSTAL, BELGIUM - MDxHealth SA (NASDAQ: MDXH), a precision diagnostics company, has announced a registered public offering aimed at raising $40 million through the sale of ordinary shares. The offering includes an additional option for underwriters to purchase up to 15% more shares than the original amount offered, excluding any direct purchases from the company.

The launch of the offering is contingent on market conditions, and there are no guarantees regarding the completion, size, or terms of the sale, including the price per share or the number of shares to be sold. TD Cowen and William Blair are serving as the joint book-running managers for the transaction.

This offering is being made under a registration statement filed with and declared effective by the Securities and Exchange Commission (SEC). A preliminary prospectus supplement related to the offering has been filed with the SEC and is publicly available on their website.

MDxHealth's announcement clarified that this press release does not constitute an offer to sell or a solicitation to buy the company's securities. Any sales will comply with the registration requirements of the U.S. Securities Act of 1933. Interested parties may obtain copies of the preliminary prospectus supplement from the offices of TD Securities (USA) LLC and William Blair & Company, L.L.C.

The press release also contained forward-looking statements regarding the proposed offering and the intended use of proceeds, highlighting that the offering is subject to market conditions without assurance of completion or terms. It emphasized that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

The offering will only be available to certain investors in the European Economic Area and the United Kingdom, in accordance with the Prospectus Regulation and the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005.

This news article is based on a press release statement issued by MDxHealth SA.

In other recent news, MDxHealth has been in the spotlight following its impressive Q2 revenue results and raised revenue guidance for 2024. Both BTIG and Piper Sandler have maintained their positive ratings for the company, with BTIG reiterating a Buy rating and Piper Sandler maintaining its Overweight rating. This follows MDxHealth's Q2 revenue of $22.2 million, a 32% year-over-year increase, largely attributed to higher volumes of both tissue-based and liquid-based tests.

The company's robust performance has led to a raised revenue forecast for 2024, now projected between $85 million and $87 million, representing a 21-24% year-over-year growth. Analysts from Piper Sandler noted MDxHealth's steady commercial momentum, improved equity ownership structure, and a plausible path to profitability, with expectations to reach adjusted EBITDA positivity in the first half of 2025.

Moreover, BTIG expressed confidence in MDxHealth's trajectory, highlighting an 89% year-over-year revenue increase in 2023 and 42% organic growth. Despite these positive developments, BTIG has chosen not to revise their estimates at this time, with plans to update their financial projections following the release of MDxHealth's complete second-quarter results. These recent developments underscore confidence in MDxHealth's ability to surpass the raised revenue guidance based on its consistent performance.

InvestingPro Insights

As MDxHealth SA (NASDAQ: MDXH) prepares for its public offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, MDxHealth has a market capitalization of $72.18 million USD, reflecting its valuation in the market. Despite an impressive revenue growth rate of 45.51% in the last twelve months as of Q2 2024, the company's operating income margin was -29.8%, indicating challenges in converting sales into operating profit.

InvestingPro Tips suggest that while two analysts have revised their earnings upwards for the upcoming period, signaling potential optimism about the company's prospects, there are significant concerns regarding its profitability. Analysts do not anticipate MDxHealth will be profitable this year, and the company has not been profitable over the last twelve months. Additionally, the company is quickly burning through cash, which may impact its financial stability. It's also noted that MDxHealth does not pay a dividend to shareholders, which is an important consideration for income-focused investors.

For those interested in a deeper analysis, InvestingPro offers additional insights and tips for MDxHealth. There are more than four additional InvestingPro Tips available, providing a comprehensive view of the company's financial standing and market potential. These tips can be found at https://www.investing.com/pro/MDXH, offering valuable information for investors considering participating in the public offering or evaluating the company's stock for their portfolio.

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