Tech: CardieX shares shoot up 54pc on deal with Chinese consumer electronics specialist
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Shares in CardieX (ASX:CDX) have spiked 54 per cent this morning to 3.7c, their highest point since May, on a deal with private Chinese consumer electronics maker Mobvoi.
CardieX, which is helmed by serial entrepreneur Craig Cooper and is known for making a range of wearable devices for conditions like hypertension and cardiovascular disease, told the market it is creating a joint venture with Mobvoi to co-develop consumer wearables.
Mobvoi is Google’s official operating partner in China. The company is also stacked with ex-Google employees, and the US-based tech giant is a significant investor.
The applications the companies co-develop will be integrated into Mobvoi’s range of smart wearable and watch solutions, and CardieX will be Mobvoi’s exclusive development partner, charged with developing features related to smart heart health and other functions that can be derived from CardieX’s algorithms.
In turn, Mobvoi will be responsible for creating a next-generation smartwatch to integrate algorithms specifically designed for Mobvoi by CardieX’s subsidiary Atcor.
Cooper said the deal was a “major and material” validation of CardieX’s technology as well as its strategy to transition from a pure medical device business to a multi-platform provider of consumer and medical device and software-based solutions.
“As a team, we are now together working on the development of a series of unique and market leading consumer applications and apps that will not only launch in China, but also be available across the complete Wear OS universe for Mobvoi and other Google partners.”
He added his expectation that the agreement would generate significant revenue for CardieX, with the company forecasting a seven-figure royalty payment for the first 12 months of sales when the products are launched in the 2021 financial year, with a “conservative” estimate royalties will increase by up to 30 per cent over the following four years.
“The joint development with CardieX’s algorithms and Mobvoi’s sensor creates the possibility for differentiation of our future wearable products, which is very exciting. We’re very much looking forward to seeing the outcome from both sides,” said Mike Lei, co-founder and CTO of Mobvoi.
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