The Share Price Of RHT Zoomed Up By 10% After The Execution Of The Distribution Agreement

  • Jan 15, 2019 AEDT
  • Team Kalkine
The Share Price Of RHT Zoomed Up By 10% After The Execution Of The Distribution Agreement
Resonance Health Limited (ASX: RHT), a medical device software company from the health care equipment & services sector announced that it entered into a distribution agreement with EnvoyAI Inc, a US Delaware Corporation for the distribution of RHT’s product FerriSmart which received clearance from FDA. EnvoyAI is world’s first medical artificial imaging intelligence (‘AI’) marketplace which is a cloud-based vendor-neutral distribution platform that combines machine learning with radiology and provides access to physicians over 53 AI solutions delivered by 31 AI partners across the world.  As per the distribution agreement, EnvoyAI holds a non-exclusive right to market, promote and sell its FerriSmart which is an AI liver-iron-concentration quantification tool through its EnvoyAI Platform which will be used for broader access and clinical use of medical imaging algorithms within busy radiology practices. Based on the sales through the EnvoyAI Platform, EnvoyAI will be eligible for the commission on sales through the EnvoyAI Exchange. EnvoyAI also holds the non-exclusive rights to refer the other products of Resonance Health Limited to its end users for which it will be receiving the commission from the company. Through this distribution agreement, the company would also be able to integrate FerriSmart into the EnvoyAI Exchange which will installed in almost 85% of the 100 largest hospitals in the US. The official listing date of RHT on ASX is 23 October 1987 where the company has given an outstanding performance throughout its journey. Since inception, the performance of the company was 911.43%. In last one year, the performance of RHT was 334.78%. The financial year 2018 which ended on 30 June 2018 shows that Resonance Health Limited made a profit of $224,619. The balance sheet of RHT appears healthy with a strong net asset base of $4,134,238 and a debt to equity ratio of 0.133. It indicates that the company is financially well placed to manage is long-term obligations efficiently. A lower debt to equity ratio shows that the company used its resources and assets in case of any financial requirement during the period. RHT has a total current asset worth $2,156,343 and a total current liabilities of $551,671 which indicates that the company can smoothly handle the working capital needs and can also clear any short-term debt. In FY2018, there was a decrease in the accumulated losses which indicates an improvement in the operating efficiency. The total shareholder’s equity is worth $4,134,238. The net cash and cash equivalent with RHT by 30 June 2018 were $1,549,088. As a result of the execution of the Distribution Agreement along with the clearance from FDA for FerriSmart is another important step of RHT towards growth and its performance in the upcoming periods. RHT having around more than 30 years of experience in the health care sector along with its outstanding performance since its listing on ASX might have created a positive influence on the shareholders and the investors. By the end of the trading, the share price of RHT increased by 10%. The closing price of the RHT share as on 15 January 2019 was A$0.110 which is 0.010 points above its previous trading day’s closing price with the market capitalization of A$40.25 million and PE ratio 166.670x.


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