Deal: Magnetica is being advised on a capital raising with major shareholder Avingtrans.

Value: Magnetica is seeking to issue shares in the company to Avingtrans to raise $11.1 million comprising $6.75 million of additional cash and to retire $4.35 million in loans. 

Area: Corporate, finance

Key players: The Thomson Geer team is led by partner Eugene Fung and includes associate Sarah Beattie.

Deal significance: Magnetica is a Brisbane-based medical technology company.

This capital raising with Avingtrans is hoped to lead to further commercialisation of its “next generation” magnetic resonance imaging (MRI) system. The raising requires shareholder approval.

“Magnetica has developed and is commercialising a compact 3T MRI system for dedicated musculoskeletal extremity imaging. The innovative system provides improved MSK imaging workflow and patient throughput; solves patient claustrophobia, comfort and noise-level concerns; and improves clinic efficiency when deployed to complement existing whole-body MRI systems,” a statement from Thomson Geer said.

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“The capital raising follows Magnetica merging with Avingtrans subsidiaries Scientific Magnetics and Tecmag in January 2021. Avingtrans is a precision engineering group listed on the LSE in the UK. It is principally engaged in the provision of engineered components, systems and services to the energy, medical and traffic management industries around the world.”

Commenting further, Thomson Geer lead partner Eugene Fung said: “We’re pleased to be assisting Magnetica, an innovative company at the forefront of MRI systems technology, to bring its systems to customers and patients around the world.”