Advanced Health Intelligence Bagged Exclusive License Deal with Changlin Network Technology Ltd; Involves $10M In Upfront Payment
Portfolio Pulse from Benzinga Newsdesk
Advanced Health Intelligence Ltd (ASX: AHI) (NASDAQ: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. Changlin, which plans to go public in 2024, will initially issue a 50% holding to AHI, expected to be restructured to 25% but not less than 20% at the IPO. The deal is contingent on Changlin securing financing and SAFE approval in China.
August 04, 2023 | 2:55 pm
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The deal with Changlin Network Technology could significantly boost AHI's revenues through the upfront payment, annual license fee, and revenue share. However, the deal is contingent on Changlin securing financing and SAFE approval, introducing some uncertainty.
The deal could significantly boost AHI's revenues, but it is contingent on Changlin securing financing and SAFE approval. This introduces some uncertainty, which could impact investor sentiment and the stock price in the short term.
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