Advanced Health Intelligence Ltd shares surged Wednesday after the digital health provider announced a binding exclusive, perpetual license agreement with Shanghai-based Changlin Network Technology Ltd.
The deal provides individuals with AHI's Biometric Health Assessment via the Changlin platform or application, identifying commonly known chronic disease indicators to triage the individual into the appropriate care pathways.
Australia-based AHI said the license agreement includes an upfront payment of US$10 million to AHI within 90 days from the deal’s execution date.
AHI will also receive an annual license fee of US$5 million, along with a 25% revenue share of gross sales.
“AHI's technology is perfectly poised for the identification of risk demonstrated in chronic diseases such as heart disease, stroke, cancer, diabetes, and chronic respiratory diseases, which account for a significant portion of the disease burden in China," Advanced Health Intelligence founder Vlado Bosanac said in a statement.
Under the agreement, AHI will initially own 50% of Changlin, although its equity interest will be reduced to 25%, but not less than 20%, following Changlin's initial public offering (IPO), which is planned for sometime in 2024.
Shares of AHI jumped 39% to $4.30 in early Wednesday trading on the Nasdaq.