Advanced Health Intelligence Ltd. (Nasdaq: AHI) witnessed a remarkable surge in its shares during the early session, soaring by 37.54% to reach $4.25. The stock had previously closed the last trading session at $3.09.
In an unprecedented move, Advanced Health (AHI) has secured an exclusive and perpetual license with Shanghai-based Changlin Network Technology Ltd (Changlin). The two companies have collaborated closely over the past 90 days to finalize the terms of this license, exclusively for The People’s Republic of China.
The alliance between Changlin and AHI began when Changlin identified the potential of AHI’s innovative technology during a demonstration with China’s third-largest insurance company, China Pacific Insurance Company (CPIC).
Changlin’s strategy revolves around utilizing AHI’s technology to address the Chinese Government’s push for healthcare innovation, aiming to improve the overall health and accessibility of healthcare services.
The Chinese Government has actively encouraged local companies to seek partnerships and incorporate groundbreaking technologies from around the world to modernize the country’s healthcare infrastructure and meet the evolving needs of its population.
The core objective is to make AHI’s Biometric Health Assessment available to individuals through the Changlin platform or application, enabling the identification of common chronic disease indicators for efficient triaging into appropriate care pathways.
Under the agreement, Changlin will pay AHI a substantial sum of USD $10 million within 90 days of the execution date to secure the exclusive rights to AHI’s technology perpetually. Moreover, Changlin will pay AHI an annual license fee of USD $5 million, along with a 25% revenue share based on gross sales, paid quarterly in arrears. The collaboration also includes standard termination clauses.
Changlin’s commercialization of the technology will be limited to the People’s Republic of China. However, AHI retains the unrestricted right to offer its intellectual property outside of China, should they choose to do so in other global jurisdictions.
The agreement also grants Changlin a 120-day standstill period during which AHI will not pursue negotiations or partnerships with other parties within China.
As part of the collaboration, AHI initially holds a 50% stake in Changlin. When Changlin goes public with an IPO in 2024, AHI plans to maintain a significant shareholding of up to 25%, ensuring a strong partnership for future growth.
This collaboration between Advanced Health (AHI) and Changlin marks a transformative step toward the future of healthcare in China, combining state-of-the-art technology with unparalleled accessibility. Both companies are dedicated to proving that innovation can be both impactful and cost-effective in revolutionizing healthcare.
