Why is this surging ASX tech stock jumping another 12% on Friday?

4DMedical Ltd (ASX: 4DX) shares are ending the week with a bang.

At the time of writing, the ASX tech stock is up 13% to $2.30.

This means that the medical technology company's shares are now up an impressive 380% since the start of the year.

What is 4DMedical?

4DMedical describes itself as a global medical technology company revolutionising respiratory care with advanced imaging and artificial intelligence.

It notes that its patented XV Technology transforms standard scans into rich, functional insights that allow physicians to detect, diagnose, and monitor lung disease earlier and with greater precision.

The ASX tech stock's expanding software portfolio includes the FDA-cleared XV Lung Ventilation Analysis Software (XV LVAS), CT LVAS, and the ground-breaking CT:VQ solution. The latter is designed to set new benchmarks in cardiothoracic imaging by combining ventilation and perfusion analysis.

Importantly, these solutions have been designed to be delivered seamlessly through a software-as-a-service (SaaS) model, integrating into existing hospital infrastructure, enhancing physician productivity, and enabling more personalised patient care.

Why is this ASX tech stock jumping today?

Investors have been buying the company's shares today after it announced another cash injection.

According to the release, the ASX tech stock has entered into an option underwriting agreement with Bell Potter. This will see the broker fully underwrite the exercise of the 4DXO listed options on issue, which are exercisable at $1.365 per option and due to expire on 31 December 2025.

Approximately 22.2 million 4DXO options were originally issued, representing approximately $30.2 million in funds if all were exercised.

Under the underwriting agreement, the underwriter will subscribe for shares attributable to any remaining unexercised 4DXO options at expiry. This ensures the full amount of $30.2 million will be received by the company

Taking these funds into account, 4DMedical will have a pro forma cash balance of $63.7 million. Management believes this gives it sufficient capital to execute its CT:VQ commercialisation plans.

4DMedical's founder-CEO, Andreas Fouras, said:

2025 has been an outstanding year for 4DMedical and our shareholders. We are moving at remarkable speed, and our momentum continues to build. This agreement ensures that we have more than sufficient capital to execute our plans to commercialise CT:VQ and to lead the Company through to profitability. I am excited by our growing traction and look forward to keeping you updated as we advance our strategy of winning key U.S. AMCs as reference sites for CT:VQ.

The post Why is this surging ASX tech stock jumping another 12% on Friday? appeared first on The Motley Fool Australia.

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