ASX-listed mobile health and e-health specialist G Medical Innovations Holdings Ltd (ASX: GMV) has executed a Binding Memorandum of Understanding valued at US$67.5 million with Chinese hi-tech medical and healthcare company Shandong Boletong Information S&T Co., Ltd. (Boletong).
The agreement between G Medical’s subsidiary G Medical Innovations Asia Limited and Boletong is for the for the distribution of G Medical’s products and for call centre and ‘Cloud’ services in the People’s Republic of China.
Under the terms of the agreement, Boletong has agreed to purchase a minimum quantity of G Medicals’ Smartphone Prizma units within the first year and to provide associated support services for a minimum period of five years.
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$67,500,000. The obligation to acquire the units commences on the granting of the CFDA certification to G Medical, which is currently in process.
The support services covered under the agreement include Medical Services where Boletong and G Medical will set up a medical call centre, and ‘Cloud’ Subscription and Support Services.
G Medical CEO Dr. Yacov Geva, said the agreement with Boletong continues to build on the company’s success in China.
“To have further increased our purchase commitment for our G Medical Smartphone Prizma devices, over and above our existing agreements, is an exceptional outcome with a key partner in Boletong,” Dr Geva said.
This adds further to our robust, multi-year revenue stream for the company, particularly within the first year of a CFDA approval being granted”.
“This relationship is a significant strategic partnership, allowing the roll out the company’s medical and ancillary support services within the Chinese territory, for both our professional call centre and Cloud based systems,” Dr Geva added.
G Medical has been supported by its corporate advisors, Perth-based Otsana Capital.