G Medical tells the ASX it's still waiting for three big deals to get going

G Medical has not yet sold any of its Prizma smartphone ‘ehealth’ covers to three distributors it has binding agreements with, the company has admitted in response to ASX questions.

G Medical last year signed agreements with distributors SilverLake, MEDTL and First Channel.

In May, G Medical (ASX:GMV) signed a China distribution deal with SilverLake which was due to start in September — delivering 100,000 units in the first year.

G Medical told the ASX SilverLake had received the first units for internal assessment purposes, but hadn’t bought any more yet because it was waiting for China Food and Drug Association (CFDA) approval.

Approval is now expected in the second quarter.

G Medical’s shares (ASX:GMV) dropped on Tuesday.

A deal in October with MEDTL for Greece and Cyprus distribution is due to deliver payments of $US10.5 million in the 12 months after the date of receipt of the first commercially ready Prizma cases.

G Medical says it has received $15,000 from MEDTL after the distributor received the first commercially-ready Prizma case — but that’s all so far.

“As G Medical intends to manufacture the bulk of its product in China where the costs of production will be cheaper, the distribution of the Prizma medical smartphone remains subject only to the receipt of the CFDA approval,” GMedical told the ASX, regarding the MEDTL deal.

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A deal in November with First Channel — for India and Taiwan distribution — is to deliver a minimum of $US90 million within the first year of the deal. But First Channel had to formalise its “Tier 1” partners which it had yet to do.

A memorandum of understanding with Shandong Boletong Information S&T in July was supposed to turn into a deal to deliver a minimum of $US67.5 million in orders, subject to approval.

G Medical says the money it’s made so far in the US is for “services provided by G Medical Diagnostic Services (previously CardioStaff) in the US and does not reflect any sales related to our Prizma product”.

The company’s shares closed Tuesday down 12.5 per cent to rest at 27.5c.