3D view of a technological development is group Aim

MEDICAL device maker 3D Diagnostic Imaging yesterday unveiled plans to move from the Plus market to the Alternative Investment Market as part of its strategy to commercialise its technology.

The Dundee-based CarieScan operating business makes a device for detecting cavity-causing diseases in teeth and has raised 2.7 million through a share placing with new and existing investors, including Scottish Enterprise.

3D's market capitalisation has risen to about 10m following the rights issue, with shares expected to start trading on Aim on 22 November at 6p.

Chief executive Graham Lay said: "Investors have responded really well to the potential for 3D's technology. Although the first application is in the early detection of tooth decay, the technology could also be used to spot the early signs of osteoporosis in bones or to scan bricks or other building materials."

The device works by sending a very small electrical signal through a tooth and measuring how easily it travels. The company said the process can not be felt by the patient and that it can detect diseases in teeth that may go on to cause cavities.

In June, 3D signed a distribution agreement covering Canada and the United States with Patterson Dental, one of the biggest players in North America.

Lay said the first CarieScan devices had already been sold, bringing in about $600,000 (379,000), and that he expects to hit $1m of sales before the end of this year.

The money raised in the share placing will be used to extend the company's sales support team in the US, doubling the headcount to 14 as part of the back-up for the Patterson deal.

3D was launched in 2008 and bought the technology developed by Idmos, an Aim-listed spin-out from Dundee and St Andrews universities that fell into administration in 2008. Lay was previously chief operating officer at Idmos.

Scottish Enterprise and a syndicate led by investment group Evolve Capital each pumped 900,000 into 3D in February 2009, with the company raising a further 200,000 when it floated on the Plus market in April last year.

The move from Plus to Aim is expected to increase the liquidity of 3D's shares and generate more interest from investors.

Lay paid tribute to the five-strong team in Dundee who had continued to develop the technology once 3D had bought it from Idmos' administrators.

House broker Finncap expects turnover at the company to rise from 1.8m next year to 5.2m in 2012 and 9m in 2013.

Analysts predict that the company's pre-tax losses will widen from the 1.2m posted in the year to 30 June to 1.3m next year, before swinging to a profit of about 250,000 in 2012 and 3m in 2013.

Shares in 3D closed down 5p on Plus last night at 10p.