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.

“The importance of this transaction for the CardieX Group also lies in the fact that we are now part of the Google ecosystem in the world’s largest market with a side-by-side development partnership with some of the best and smartest engineers and technologists in the world,” he said.

“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.

 

Read more about CardieX:

Check-up: here’s the latest with the ASX small cap health stocks

What’s next for Cardiex as ‘wearables’ trial gets underway

 

In other ASX tech news today:

Buddy Technologies (ASX:BUD) raising $6.1m. Buddy, a smart city tech company, has completed the raise from institutional and sophisticated investors, selling 305.7 million shares at 2c a pop. The company will now embark on a share purchase plan for existing shareholders at the same price for up to $5m. All funds raised will go towards operating expenses and growth of the company’s consumer and commercial businesses.

DroneShield (ASX:DRO) signs deal with massive British telco. DroneShield shares got a 16 per cent boost on the news that it would provide counterdrone solutions to BT, which is the largest telco in the UK. BT will then provide counterdrone solutions to a range of its customers across a number of industries and sectors.

BluGlass (ASX:BLG) to develop cascade LEDs. The company will work with US-based LED company Bridgelux to collaborate on a range of cascade LEDs for the growing general lighting market. Bridgelux will evaluate BluGlass’ technology for the products. Shares got a 24 per cent boost to 13c.

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