G Medical Innovations Holdings Ltd (ASX: GMV) is a developer of electronic health (eHealth) technologies, and has an array of clinical-grade mobile health (mHealth) products and services, wherein the products include smartphone G medical jacket and wireless vital signs monitoring system. The maker of the smartphone jacket allows for bringing an on-the-go health monitor in a phone, and basis this technology, the group is catching attention as a successful small-cap tech player.

A deal worth over $US405 million (through a binding MOU) has been bagged by the group for the next three years from Hong Kong-based company First Channel, and will allow sale of its devices in India and Taiwan. Particularly, First Channel will buy a minimum quantity of units of Prizma devices at a pre-determined price totalling a minimum of $US90 million in year one, $US135 million in year two and $US180 million in year three. The group also aims to sell the device through third parties including Vodafone India and Reliance Communications.
 

Prizma Device (Source: Company Reports)

It is said that the group has now about $1 billion in minimum commitments for the next five years. Going forward, the group aims to expand with footprint across US and China and introduction of the second version of its smartphone case, called Prizma. Deals in Greece and Cyprus for $10.5 million are other additions to the kitty.

On the technology front, the group’s battery-powered Prizma device that has already received approval from the US Food and Drug Administration and CE certification in Europe, is said to be placed in a sleeve fitting over a user’s smartphone and has the ability to be connected via Bluetooth to another device. The device could thus measure the vitals of the person including heart rate, temperature, oxygen levels and can even conduct an electrocardiogram and a stress test. On the other side, the smartphone is said to act as the visual dashboard for the data through which information can be sent across in real-time to a doctor or healthcare professional. The second version is now expected to have the ability to measure biochemicals including liver enzymes and glucose levels, and is said to be released in 2018 in specific regions. From regulatory standpoint, the group also expects to receive approval from Australia’s Therapeutic Goods Administration and clearance from the Chinese regulatory body in the near term.

For further growth and expansion, GMV is seeking to raise $10 million via a placement from investors. The capital raising is said to be managed by Hunter Capital Advisors and Otsana Capital. The securities of the group were placed in a trading halt, as at November 13, 2017, post surging 275% in last six months, as at November 10, 2017. With an already huge run-up, it might be worth watching the stock once it resumes trading.

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