By By Chris Wack
Shares of Advanced Health Intelligence (AHI) surged by 59% to $4.90 following the announcement of a binding exclusive, perpetual license agreement with Shanghai-based Changlin Network Technology.
AHI’s stock had hit its 52-week low of 64 cents on May 2 but has since seen a remarkable increase of 115% over the past year.
Over the past 90 days, Changlin Network Technology and AHI have been working closely together to finalize the terms and commercial aspects of the exclusive license for China. On Wednesday, the two companies officially signed the license agreement.
Under the terms of the agreement, individuals will have access to AHI’s Biometric Health Assessment through the Changlin platform or application. This assessment will help identify common chronic disease indicators and guide individuals towards appropriate care pathways.
As part of the agreement, Changlin will make a payment of $10 million to AHI within 90 days from the execution date. This payment grants Changlin exclusive and perpetual rights to AHI’s technology. Additionally, Changlin will pay an annual license fee of $5 million, along with a revenue share.
AHI will receive a 25% revenue share from Changlin’s gross sales. This share will be paid quarterly in arrears.
Changlin has plans to go public in 2024. In the event of an IPO, AHI will retain a stake of up to 25%, but no less than 20%, in Changlin.
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