PMD Device Solutions (PMDS) signed a Letter of Intent with Red Line Microconsult AB's CEO, Magnus Sorlander, for a SEK 2 million annual license fee and a royalty on all sales. PMDS and Magnus Sorlander, have signed a Letter of Intent to develop and sell the monitoring technology, Coala-Life Monitor, within Europe. The transaction was confirmed by completing a 2 MSEK upfront license fee.

The transaction will see PMDS retain and service the intellectual property, regulatory approvals, supply chain, and rights to sell in the US. The US company, Qorum Partners Inc., is not part of the transaction. Mr. Sorlander will have the right to develop the intellectual property and support sales of the device across Sweden and Europe.

Both PMDS and Mr. Sorlander will continue collaborating to maximise the technology's opportunity. Mr. Sorlander was the original inventor of the technology and brings significant expertise in electrocardiography, acoustic sensing, and machine learning technologies. The agreement will see a SEK 2 million annual license fee with a 5% royalty on all device sales.

A royalty fee of 2.5% will be realised on any new developments requiring the device's background IP. A buy-out clause will offer the sale of all IP and regulatory ownership for a fee of SEK 1.6 million in addition to 5x the last 12 months' royalty fee's. The Coala monitor is making a difference in the lives of approximately 900 patients and 100 patients in Sweden and the US, respectively. The potential impact of this innovative technology on European Cardiovascular Disease (CVD) patients, who account for 40% of the EU/US healthcare spending, is immense.

By combining PMDS' healthcare expertise and market access with Mr. Sorlander's advanced technology, the company are poised to drive significant advancements in the healthcare industry.