Shares were up 60% to an intra-day high of 29.7 cents on strong volume of more than 4.5 million.
Global investment bank engaged
The company has engaged global investment bank, UOB Kay Hian (Hong Kong) Ltd, as advisers for the listing of Guangzhou Yimei Innovative Medical Science and Technology Co Ltd (GYIMSTC).
Under the proposed listing, GYIMSTC would spin off from G Medical, with the ASX-listed company to retain not less than a 50% ownership stake.
The parent company currently holds 70% of GYIMSTC.
Intended listing in six to nine months
All parties are working towards a listing within the next six to nine months.
GYIMSTC oversees China-based manufacturing for G Medical, ensures all local certifications are met and has worked to build a strong relationship with the China Food and Drug Administration (CFDA).
It was the first company in 2018 to be granted acceptance to the Green Channel expedited Guangdong Provincial CFDA regulatory approval process.
Proven performer in China
This process was successfully applied to G Medical’s Prizma Medical Smartphone Case and will play a crucial role in the global commercialisation of this product.
Future innovative medical solutions in the development pipeline should also benefit from this process.
Funds raised from the listing will provide substantial working capital and fuel the research and development of innovative mobile health solutions and enable continued investment into state-of-the-art manufacturing facilities.
G Medical specialises in innovative next-generation mobile and e-health solutions and services using its suite of devices and software solutions with a view to driving multiple and recurring revenue streams.