Control Bionics expands NeuroStrip presence into US and Japan with new agreements

Control Bionics (ASX: CBL) has expanded into the US sports performance and Japanese neurological rehabilitation markets with the first commercial agreements for its advanced NeuroStrip wireless wearable device.

The strategic partnerships are with existing customers and will leverage the technology to drive better sports performance and patient outcomes, providing platforms for expansion into other regions.

Control expects the agreements to diversify its market focus and generate material revenue through hardware sales of NeuroStrip and recurring software-as-a-service subscription fees.

Neuro Elite Athletics deal

The first commercial deal, with US-based Neuro Elite Athletics (NEA), will see Control Bionics acquire a 20% stake for a US$250,000 consideration, including cash and in-kind contributions.

The investment is expected to rapidly accelerate the rollout of NEA’s proprietary NeuroBounce jump improvement program, which is initially targeting domestic markets.

The program is the world’s only computerised electromyography (EMG) training solution proven to increase an athlete’s vertical leap by as much as 15 centimetres and enhance explosiveness in just a few sessions.

College focus

NeuroBounce is being targeted to the more than 28,500 sports teams and 600,000 athletes on the lucrative US college circuit.

NEA also plans to market the program to more than 300,000 high school teams nationwide with 7.9 million participants, offering long-term growth potential for Control Bionics.

Under the terms of the NEA acquisition, Control Bionics will receive direct revenue from hardware sales, software subscriptions and its share of NeuroBounce distributions.

It will also have exclusive rights to market NeuroBounce in Australia and Japan.

Stroke Lab agreement

Control Bionics has also signed an agreement with Tokyo-based rehabilitation facility Stroke Lab to localise NeuroStrip technology for the Japanese market.

The facility combines neurology and therapy to deliver evidence-based, personalised care and has proven expertise in surface EMG technology for stroke recovery.

The deal establishes a framework for a joint operating agreement in the new year that will strengthen Control’s foothold in Japan’s advanced rehabilitation market.

Pivotal step

Control Bionics chief executive officer Jeremy Steele said the new commercial agreements mark a pivotal step in the company’s mission to harness neurotechnology for human empowerment.

“These collaborations underscore our ability to enter and lead high-growth markets and drive innovation while delivering value for our shareholders,” he said.

“By strengthening our relationships with existing customers we have the opportunity to more rapidly scale our company, diversifying into new markets and generating recurring revenue to build a business that has a very promising future.”