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G Medical Innovations Holdings Ltd on track for revenue growth in 2019

The mobile and e-health company is set for first production from its facility in Guangzhou, China.
G Medical's Prizma device
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Prizma monitors a full range of vital signs and biometric parameters

G Medical Innovations Holdings Ltd (ASX:GMV) is well positioned for growth in 2019 with catalysts including first production from its facility in China and increased sales revenue from an expanding global presence.

The mobile and e-health company has received all formal certifications from regulatory bodies to utilise its Guangzhou facility in China for production.

Device production is expected to begin this quarter once all final device componentry has been received for the production line.

To produce Prizma and G Medical Patch

This facility will produce the company’s Prizma and G Medical Patch (GMP) products.

First units are expected to be delivered to customers by the end of the quarter in territories which have further granted regulatory approval for the device/s.

CEO Dr Yacov Geva said: “We are pleased with the achievements of the company in 2018, and the company is well positioned for substantial growth in 2019.”

Shares were up almost 8% in early trade to 29 cents.

The company specialises in innovative next-generation mobile and e-health solutions and services using its suite of devices and software solutions with a view to driving growth.

READ: G Medical Innovations acquires revenue generator and large patient base

Strong revenue growth is expected to contribute to the company plans with revenue streams expected to come from product sales as new MOUs are fulfilled and services are provided.

Revenues are also expected to increase as the company further expands its global presence, as well as when final outstanding regulatory approvals are granted.

READ: G Medical Innovations acquires Telerhythmics, expands US footprint

The acquisition of Telerhythmics in the fourth quarter of 2018 is expected to support revenue growth.

This deal has increased G Medical’s footprint in the US vital signs medical monitoring, Independent Diagnostic Testing Facility (IDTF) and Mobile Cardiac Telemetry (MCT) markets.

As well as revenue from existing product sales, significant recurring service revenues from remote monitoring are anticipated to be generated.

Also, changes to Medicare rebates of remote patient monitoring are expected to come into effect in 2019, potentially underpinning rapid growth of this revenue stream.

Dual NASDAQ listing progresses

Another 2019 catalyst will be dual listing on NASDAQ.

This development is continuing to progress with G Medical working with its underwriter, partners and regulators towards the anticipated listing.

An F1 submission has been completed and lodged with the US Securities and Exchange Commission for review.

Hong Kong listing planned

The company is also listing its Chinese subsidiary on the Hong Kong Stock Exchange with listing anticipated in the June quarter of 2019.

An agreement has been signed with Mr Geva to formalise an unsecured loan of up to US$10 million with a repayment date of April 30, 2019.

The company is committed to repaying the entire loan amount in cash no later than the repayment date, which can be extended to December 31, 2019, at the sole discretion of Mr Geva.

In a statement, the company said: “The board is of the view that the current terms on which Yacov Geva has agreed to provide the facilities are substantially better than those available to the company from commercial lenders and that the loan agreement is otherwise on arms’ length terms.”



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