Pro Medicus to make up to $20m convertible note investment in Echo IQ
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The news: Pro Medicus has signed a binding heads of agreement to make an initial $10 million convertible note investment in small cap health imaging company Echo IQ. Pro Medicus is set to become a reseller of the EchoSolv medical image analysis platform.
The context: Pro Medicus also has the option to invest a further $10 million tranche when Echo IQ receives US Food and Drug Administration clearance for its EchoSolv HF system.
Pro Medicus told the exchange that the agreement will support further development and commercialisation of Echo IQ’s AI solutions, including algorithms for aortic stenosis and heart failure.
It is intended that Echo IQ technology will be offered through Pro Medicus’ VIsage 7 Cardiology system.
The heads of agreements outlines definitive legal agreements to be negotiated and entered into within the next 20 business days.
If the notes are not converted, they must be redeemed in full 24 months after issuance and have an interest rate of 12.5% per annum. The notes will redeem at the lower of $1.05, and the five-day volume weighted average price of the share traded on the ASX. Echo IQ shares last closed at $1.24.
What they said: “The execution of this binding Heads of Agreement with Pro Medicus represents a transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US,” Echo IQ CEO Dustin Haines said.
Pro Medicus CEO Sam Hupert said: “This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and third party algorithms such as Echo IQ.”
