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Sydney-based medtech Echo IQ Limited (ASX: EIQ) has secured firm commitments for $110 million in an institutional placement to bankroll its commercial expansion across the United States and accelerate development of its broader AI product portfolio.
The placement, priced at $1.45 per share, was supported by several existing institutional shareholders along with new "high-quality domestic and international healthcare and technology investors", says the company.
The issue price represents an 8.8 per cent discount to the previous traded price for Echo IQ shares with the new shares being issued equivalent to 11.5 per cent of the company's current issued capital.
Net proceeds will be directed toward US commercial expansion and deployment of the company's EchoSolv platform, development of pipeline cardiovascular AI products spanning pulmonary hypertension, hypertrophic cardiomyopathy, mitral regurgitation and cardio-oncology indications, and pursuit of strategic growth opportunities.
“This placement represents the next step in Echo IQ's commercial evolution and reflects the strong strategic progress the company has delivered over recent years," says Echo IQ's CEO Dustin Haines.
"We have established strong commercial foundations through FDA clearance of EchoSolv AS, expansion across leading US health systems, strategic partnerships with organisations including Mayo Clinic and Pro Medicus, and continued advancement of our EchoSolv HF program.
"The support received from both existing and new institutional investors reflects confidence in our strategy, our execution and the significant commercial opportunity ahead."
Haines says the funding round will put Echo IQ in position to accelerate deployment of EchoSolv across the US at a time when customer engagement continues to build.
"We believe we are now in a position to meaningfully expand our commercial organisation, increase implementation capacity and support broader adoption across enterprise health systems," he says.
"Beyond commercial execution, our strengthened balance sheet is expected to enable us to accelerate development of our broader cardiovascular AI platform.
"We also see opportunities to leverage the clinical, technical and commercial foundations that we have established to look to expand our product portfolio and create additional long-term value.
"Our focus is firmly on execution which includes growing commercial revenues, expanding our customer base and continuing to establish Echo IQ as a leader in AI-enabled cardiovascular diagnostics."
The raise comes on the back of a string of commercial and regulatory milestones for Echo IQ, including FDA clearance of its EchoSolv AS product and a pending FDA clearance application for EchoSolv HF.
The company has built a commercial pipeline exceeding 50 active US accounts and secured deployments at prominent institutions including Mount Sinai and Beth Israel.
Last week, Echo IQ also struck a binding heads of agreement with ASX-listed medical imaging software group Pro Medicus (ASX: PME) encompassing up to $20 million in secured convertible notes and a proposed US reseller arrangement.
On the distribution front, the company has signed an agreement with Mayo Clinic for EchoSolv HF distribution, adding one of the most recognised names in US healthcare to its growing partner network.
Operationally, Echo IQ processed 9,220 echocardiograms in the first quarter of calendar year 2026, representing 131 per cent quarter-on-quarter growth.
The company held $11.14 million in cash at 31 March 2026, prior to the placement.
Recent leadership additions have bolstered the company's executive bench, with Matthew Dodds joining as chief financial officer following stints at LivaNova and Johnson & Johnson, and Dr Vinod Thourani appointed as a clinical advisor.
Echo IQ shares were trading at $1.62, up 3c, at 1.50pm (AEST).
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