EMVision (ASX:EMV) signs A$8M funding deal with Australian Stroke Alliance

Highlights

  • EMVision has signed a binding Project Agreement with the Australian Stroke Alliance (ASA).
  • ASA will further explore collaborative grant funding chances with EMVision.
  • EMV share price has gained considerably on the deal declaration.

Medical imaging technology company EMVision Medical Devices Limited (ASX:EMV) has announced on ASX that the Australian Stroke Alliance Limited (ASA) has signed a binding project agreement with EMV to enable it to begin accessing AU$8 million in non-dilutive, staged cash funding.

Why have EMV and ASA signed the agreement?

The Australian Stroke Alliance (ASA) has signed the project agreement to lay down the foundations for a national approach for equitable stroke treatment. Brain stroke poses a unique opportunity for transformative treatment, and neuroimaging is critical for on-scene diagnosis and urgent treatment.

EMVision is a key commercial collaborator seeking to develop and deploy portable brain imaging devices designed for ambulance use. The staged funding from the agreement with ASA will support EMVision’s development and clinical validation of its 2nd Gen, cost-effective, portable device model. In addition, the ASA provides EMV precious global clinical expertise, connectivity, and advocacy benefits, including support from paramedic stroke services across Australia.

Terms of agreement-

  • Funding under the agreement is contingent on the project continuing as warranted in the agreement stage and on achieving milestones in the future.
  • EMV retains sole intellectual property (IP) rights throughout the project. Any new IPP created under EMVision’s specific technology tier will remain with EMV.
  • For the funding and clinical expertise provided, EMV has agreed to pay ASA a royalty of 2% of Net Sales.
  • In specific, limited scenarios, royalties will be payable only on commercial sales in Australia for five years from receipt of the full funding.
  • EMVision will receive AU$8 million of non-dilutive cash funding. ASA will stage payments over the five-year project, weighted on earlier years.
  • The ASA has also committed to exploring further collaborative grant funding opportunities.

Meanwhile, EMV shares were trading over 2.830% higher at AU$2.900 per share as of 1:50 PM AEST.

Bottom line

The support from the ASA and clinical expertise in stroke will deliver urgent care, highly portable stroke diagnosis devices for patients. The potential benefits are enormous and will help over 1/3rd of Australia’s population in rural, remote, or indigenous areas.

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