'Advanced Health Intelligence To Re-Enter China With Exclusive License Deal With Changlin Network Technology Ltd' - Newsfile
Portfolio Pulse from Happy Mohamed
Advanced Health Intelligence Ltd (AHI) has signed an exclusive, perpetual license agreement with Shanghai-based Changlin Network Technology Ltd. The deal includes an upfront payment of $10 million to AHI, an annual license fee of $5 million, and a 25% revenue share of gross sales. AHI will initially hold a 50% stake in Changlin, which is expected to reduce to 25% but not less than 20% at Changlin's IPO, targeted for 2024. The agreement allows Changlin to commercialize AHI's digital healthcare solutions in China.
August 04, 2023 | 11:20 am
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The deal with Changlin provides AHI with a significant upfront payment, recurring annual license fee, and a share of gross sales, which could positively impact its revenues. Additionally, AHI's stake in Changlin could provide further financial benefits, especially if Changlin's planned IPO in 2024 is successful.
The license agreement with Changlin provides AHI with a significant upfront payment and a recurring annual license fee, which will directly contribute to its revenues. The 25% revenue share of Changlin's gross sales could also provide a substantial boost to AHI's revenues, depending on Changlin's sales performance. Furthermore, AHI's initial 50% stake in Changlin, which is expected to reduce to 25% but not less than 20% at Changlin's IPO, could provide further financial benefits, especially if Changlin's planned IPO in 2024 is successful.
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