mdxhealth $ 40m offering to strengthen the cash position

mdxhealth has proposed and priced an offering of 20m shares for $ 40m gross proceeds at $ 2.00 p.s. (21% discount vs. yesterday's close price). The new capital significantly strengthens the company's cash position (1H24: $ 21.3m) and provides runway well beyond the expected adjusted EBITDA profitability point in 1H25. We do note the significant dilution of 20m new shares vs. 27m shares currently outstanding. We adjust our TP from $ 5.7 to $ 4.2, and reiterate a Buy rating.