ABOVE GUIDANCE SALES – prompts $2.15m equity raise to further accelerate growth

Home Sleep and hospital sales growth across USA and Europe

BUSINESS Update

• Compumedics has raised $2.15m (before costs) at $0.26 per share from existing and new institutional and high net worth investors
  
• USA sales orders taken continue to grow, up 150% on the same time last year driven primarily by sleep and Somfit business, with growing sales pipelines and quoted business across the USA business
• Somfit quoted business in the USA at $6.3m (USD4.2m) with a recent initial sale to a large global CPAP player and Somfit success and new trials at large Independent Diagnostic Testing Facilities (IDTF’s) in the USA
• Europe business currently running 65% higher than the same time last year, driven by sleep and neurology business and initial Somfit sale into Europe
• Asia is up 175% on same time last year with new sales orders from China, underpinning the ongoing business there
• Company FY25 guidance – sales more than $55m (excluding MEG) and EBITDA above $5m. EBITDA will be weighted to the second half due to marketing and development costs being expensed in first half, and sales benefits coming in the second half
• This higher growth expected in FY25F, and continued momentum expected into FY26F have prompted a need for additional equity to the $1.9m raised in June 2024. $1.2m for additional working capital and sales force expansion and $0.9m for FDA approval process for disposable Somfit (by May 2025)
• FY25 sales guidance excludes the new MEG sales highlighted last week (29 November 2024 ASX Release). CMP is targeting one additional MEG sale to ship into China very late in FY25 ($4.5m) and a further order to ship into China late in calendar 2025 of about $4.8m but has not included that in FY25 sales guidance at this time. CMP is quoting on several more MEG installations after the successful 29 Nov 2024 sign-off of MEG in Tianjin Normal University (TJNU). Existing CMP banking arrangements satisfy the MEG expansion requirements.

Compumedics Limited (ASX: CMP) a global medical device Company that develops, manufactures and commercialises diagnostic technology for sleep, brain, and ultrasonic blood flow monitoring is pleased to advise that the Company’s sales orders taken through the first five months of FY25 trading, continues to provide further evidence of the return to growth in our key USA key market. Sales orders taken are up 150% on the same five-month period last year. Further, the Company’s European business is 65% higher than the same corresponding period last year, driven by both the sleep and neurology business. The Asia-based business is also higher for the first five months of the year, up 175%. This is driven primarily by the sleep business and underpins our ongoing business in China. Overall, the business in total has taken sales orders almost 35% higher than for the same five-month period last year.

In the USA-based business, sales orders for the first five months are running about 150% higher than at the same time last year, with the sleep business leading the growth and with Somfit sales now building towards $1.0m (USD0.7m) in this key market. Sales momentum is continuing to build and with new sales resources coming on board, in line with our stated USA strategy, we are well placed to accelerate that growth over the remainder of FY25. The USA business is already in, or progressing trials and demonstrations with 3 large IDTF’s, with one IDTF using the Somfit device for part of their HST business. The addressable home sleep apnea test (HST) market in the USA is between 3m and 4m HST’s a year, representing a market opportunity between $150m(USD100m) and $300m(USD200m) for Compumedics.

Further the Company has taken an initial Somfit order from a global CPAP player and continues to work with other leading sleep service providers in Australia and other key markets around the world. This includes an initial $200k (EUR120k) Somfit sale in Europe, representing the initial market activity in the next large market opportunity for Somfit.

This Somfit sale into the European market helps underpin the growth in this market driven by sales into the traditional sleep diagnostic market and the neurological monitoring market.

In addition, the Asia based business has taken sales orders from China, which underpin the ongoing business there as we focus on this key market as well as other key Asian markets.

Capital Raising Details

Compumedics received binding commitments for a Placement to professional and sophisticated investors, comprising of 8,269,231 new fully paid ordinary shares in the Company (Placement Securities) at an issue price of $0.26 to raise approximately $2.15m (before costs) (Capital Raising). The issue of Placement Securities will be completed under the Company’s LR7.1 placement capacity. The Placement price of $0.26 per share represents a 6.8% discount to the 15-day VWAP immediately prior to the trading halt.

The placement was well supported by new and existing institutional, professional and sophisticated investors. PAC Partners Securities Pty Ltd acted as sole lead manager for the capital raising and will be paid fees on normal commercial terms, which is up to 6% of the value of the new securities issued.

Use of Funds

The Company confirms the use of funds as set out below:

(a) The employment of up to 4 additional sales staff in the USA, who will report directly to the US National Sales Manager, for the development of the Somfit home sleep business;

(b) Provide additional working capital to support the increased sales to be generated by the new sales staff; and

(c) Ensure the disposable Somfit device is released to market by May 2025.

About Compumedics Limited

Compumedics Limited [ASX: CMP] is a medical device company involved in the development, manufacture and commercialisation of diagnostics technology for the sleep, brain and ultrasonic blood-flow monitoring applications. The Company owns US based Neuroscan and Germany based DWL Elektronishe GmbH. In conjunction with these two subsidiaries, Compumedics has a broad international reach, including the Americas, Australia and Asia Pacific, Europe and the Middle East.

Executive Chairman Dr. David Burton founded Compumedics in 1987. In the same year the Company successfully designed and installed the first Australian, fully computerised sleep clinic at Epworth Hospital in Melbourne. Following this early success, Compumedics focused on the development of products that sold into the growing international sleep clinic and home monitoring markets.

Compumedics listed on the Australian Securities Exchange in 2000. Over the years, Compumedics has received numerous awards, including Australia’s Exporter of the Year, and has been recognised as a Top 100 Innovator by both German and Australian governments.

For further information please contact:

Dr David Burton
Executive Chairman, CEO
Compumedics Limited
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399

David Lawson
Director, CFO
Compumedics Limited
Phone: + 61 3 8420 7300
Fax: +61 3 8420 7399

Authorised for lodgement by Compumedics Limited’s Board of Directors