Point-of-care medical imaging equipment developer Curve Beam AI (ASX: CVB) has received Chinese regulatory approval for a $10 million strategic equity investment by Shandong WeiYing Intelligent Medical Technology Co, a subsidiary of Shandong Weigao Orthopaedic Materials Co (WEGO Orthopaedics).
The approval covers an initial $4 million tranche which will be invested via a share placement priced at $0.405 per share, with receipts of funds expected by month end.
The remaining $6 million will be invested on the achievement of specified commercial and regulatory milestones.
Commercialisation agreements:
Shandong’s investment forms part of a 10-year exclusive commercialisation deal incorporating binding sales, marketing, distribution, manufacturing, regulatory support and intellectual property agreements for CurveBeam’s weight-bearing CT (computed tomography) and proprietary artificial intelligence (AI) technologies in China, Hong Kong, Macau and Taiwan.
The deal is supported by Chinese medical device company WEGO Orthopaedics, which has a core portfolio including orthopaedic implant systems and surgical instruments used in trauma, spine, joint replacement and sports medicine procedures.
WEGO is recognised as one of the nation’s most comprehensive and competitive orthopaedic implant manufacturers and holds the largest domestic market share among orthopaedic device suppliers.
This is an important milestone.
CurveBeam AI chief executive officer Greg Brown was pleased to have received regulatory approval for the investment.
“Being advised of this approval and formal sign-off under the China ODI (outbound direct investment) framework is an important milestone for us and reflects continued broader support for WEGO Orthopaedics and its affiliates,” he said.
“The proceeds will be applied toward regulatory, manufacturing and commercial activities in Greater China and will support the execution of our global growth strategy, providing a pathway to target long-term revenue growth and royalties from a major international market.”
Specialist scanning technology
CurveBeam develops, manufactures and sells specialised medical imaging scanners, coupled with AI software-as-a-Service (SaaS)-based clinical assessment solutions to support the management of musculoskeletal conditions.
The company’s flagship HiRise product performs weight-bearing and traditional non-weight-bearing CT scans, providing a range of advantages over the use of traditional CT or magnetic resonance imaging (MRI) devices.
