G Medical Innovations Holdings has signed a deal potentially worth at least $110 million for its medical monitoring phone cases.

The Israeli medtech company has sold the exclusive Greece and Cyprus distribution rights for its Prizma smartphone case and future products to MEDTL Medical Technologies.

The five year deal is worth $US10.5 million ($13.3 million) in the first year.

After that, the minimum purchase in each subsequent year is 25 per cent above the prior year’s minimum. That ratchet means, based on the first year’s sales, that the combined minimum deal could be worth $110 million.

Production is yet to start on the phone cases. A spokesman for the company told Stockhead the production scale-up in China was happening this month and distribution to Greece and Cyprus could be expected by the end of the year.

G Medical (ASX:GMV) also negotiated another $US500,000 to set up and run a MEDTL call centre to provide support services for the phone case.

The phone case can measure heart rates and rhythms, temperature and blood oxygen via touchpads on the back. The company also claims it can measure stress levels.

In September, US and the EU regulators gave it the go-ahead to launch in those regions. G Medical signed an MoU with Winola Lake for US distribution in December 2016.

G Medical listed in May this year via Perth advisors, at 20c.

The share price doubled from July after the unveiling of an MoU for a similar $US67.5 million ($86 million) distribution deal in China.

That arrangement doesn’t have the same 25 per cent ratchet clause and is dependent on G Medical’s phone case getting the okay from Chinese regulators, expected by early 2018, but could be worth as much as $US338 million over the period.

G Medical has a market cap of $30 million, and fell 3.49 per cent in early trading to 41.5c after a large run-up ahead of the announcement last week.

Its first half results showed a $US21.7 million loss, on no revenues.