G Medical Innovations’ (ASX: GMV) chief executive officer and president Yacov Geva has put more of his personal cash into the company, this time in the form of a US$10 million loan facility.
Mr Geva initially offered the company a US$3 million loan in May to provide G Medical with extra funding for its growth and expansion plans including working capital, inventory and medical devices.
The US$3 million loan has now been upped to US$10 million and will attract a 10% annual interest.
Under the agreement, G Medical can repay the loan fully at its own discretion.
Commenting on the loan, G Medical’s board stated the Mr Geva’s terms were “substantially better” than other financing options available to the company from commercial lenders.
Additionally, the loan is on “arms’ length terms”.
Mr Geva’s agreement to up his loan comes after G Medical’s US$3.25 million ($4.5 million) capital raising to New York based MEF I, which purchased 3.25 million convertible securities at US$1.10 each.
The loan wasn’t Mr Geva’s only personal financial backing in G Medical, with the company chief snapping up 1.036 million fully paid ordinary shares on-market in early April for $283,875.
G Medical’s topped up cash reserves follow the company’s announcement yesterday it had received regulatory approvals for its China processing facility from the US Food and Drug Administration (FDA), European CE (CE) and China Food and Drug Administration (CFDA).
The approvals come after G Medical’s production facility in Guangzhou underwent two months of independent auditing.
According to G Medical, the approvals pave the way for it to boost its global production capacity.
“We are very pleased to have achieved CE, FDA and CFDA approval, which exemplifies the high-quality of our production facility and strong in-country relationships,” Mr Geva said.
“The company has been committed to achieving this major milestone in record timeframes and we now look forward to being able to meet the demand from our global partnerships and rapidly execute our commercial plans,” Mr Geva added.
G Medical has secured FDA approval for more than 48 medical devices, which include mobile sensors to monitor a range of vital signs such as temperature, electrocardiography, body positioning, heart rate and blood oxygen levels.
The company’s products include the Prizma medical smartphone case and associated software platform, which enables vital sign data to generated, stored, shared and analysed.
G Medical’s strategy is to sell its medical devices into several regions including the US, Europe, China and Japan.
Investors reacted positively to the news with G Medical’s share price shooting up more than 17% to reach $0.40 in early morning trade.