MedPal AI (MPAL)  has raised £5 million through a placing at 5 pence per share as it looks to fund the working capital needed to support faster growth across the business.

The company said its annualised revenue run rate had reached more than £35 million based on trading between 1 and 19 September 2026, compared with ~£28 million in August and £8.6 million in July. The annualised figures are based on monthly revenue multiplied by 12 and are not a forecast.

The placing comprised 100 million new shares and was predominantly taken up by existing shareholders, alongside institutional and other investors. MedPal expects net proceeds of ~£4.7 million.

Most of the funds, around £4 million, will be used to finance medication purchases before the company receives NHS payments, supplier rebates and VAT repayments. MedPal said this working capital requirement is increasing as sales grow.

A further ~£0.7 million will be spent on additional automation at the group’s GLP-1 pick and pack line in Runcorn. The investment is expected to lift capacity to 14,000 orders a day, with the expanded line due to become operational by the end of October.

Growth has continued at New Health, MedPal’s GLP-1 weight management clinic. The business generated more than £1.5 million of revenue from over 12,000 orders in the first 19 days of September, with its daily revenue rate running ~35% ahead of August.

New Health has now acquired more than 25,000 customers since marketing began in July, compared with more than 16,000 reported earlier this month. MedPal also said 27% of first-time customers have already returned to place a second order.

The clinic recorded its strongest day so far on 15 September, when it dispensed 2,000 orders and generated ~£300,000 of revenue.

Meanwhile, MedPal has begun early discussions with UK clearing banks over a working capital facility secured against receivables. The company said such a facility could reduce the need for further equity funding as the business grows.

MedPal AI’s Founder and Chief Executive Officer Jason Drummond said: "From zero to £35 million of annualised revenue in eleven months, and September is running faster than August. On Tuesday last week New Health dispensed 2,000 orders in a single day, and more than a quarter of our customers are already coming back for their second order, before most of them have even finished their first. Growth this fast has to be funded, and the Placing lets us accelerate rather than pace our growth to our cash. I am very pleased with the institutional support for the company generated by CREST Corporate Broking, and I would like to thank our existing shareholders, who provided the majority of the funding, for backing us again.

"We are now in early discussions with UK banks regarding a facility against those receivables, and our aim is that in future our working capital is funded by the bank rather than by shareholders. This is only the beginning. We are seeing encouraging early repeat ordering and every reorder comes at no acquisition cost. Further, our proprietary dispensing facility, our platform and our AI take the cost out of serving them. This is what the Health OS was built for."

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MedPal’s latest trading update shows that momentum at New Health has continued into September. The placing gives the company more room to fund that growth, while a bank facility could eventually ease the pressure on equity funding if volumes continue to rise.