G Medical Innovations Holdings’ (ASX:GMV) Chinese subsidiary has executed a landmark agreement with Shandong Boletong Information S&T Co Ltd for the distribution of its products in China.
Israeli mobile health outfit G Medical started trading on the ASX in May 2017, following a A$12 million initial public offer.
The company’s key product is its medical smartphone jacket, Prizma, a consumer device that transforms any smartphone into a medical monitoring device.
G Medical’s shares were last trading at 20% higher intraday, at A$0.21.
Pursuant to the terms of the agreement, Boletong has agreed to purchase a minimum quantity of units within the first year of the G Medical smartphone Prizma.
Boletong will pay a pre-determined price for each unit, with the value of the agreement based on the minimum commitments being no less than US$67.5 million.
The obligation to acquire the units commences on the granting of the CFDA (China Food and Drug Administration) certification to G Medical, which is currently in process.
Additionally, Boletong will provide medical and ancillary support via nurse and physician staffed call centres and ‘Cloud’ services.
The companies are planning to set up a medical call centre providing support services from 50-60 nurses and 3-5 general practising physicians.