Current Report No.: 28/2023
Date of Preparation: October 5, 2023
Legal Basis: Article 17(1) of the MAR Regulation – confidential information.
The Board of Medicalgorithmics S.A., based in Poland, Warsaw (“Company”; “Issuer”), hereby announces that on October 5, 2023, the Company, as the Seller, has entered into a Strategic Alliance Agreement (“Agreement”, “SSA”) with a company preparing to operate as an IDTF (entity providing medical services in the U.S.) based in Texas, USA (“Distributor”), as the Buyer. The scope of the Agreement is to provide the Distributor with certain support services pertaining to ECG heart diagnostics, ECG heart monitoring services, and the delivery of EKG cardiac telemetry products (defined in detail in the Agreement) based on the Pocket ECG IV software and devices supplied by the Company.
The term of the Agreement begins on the day it takes effect, i.e., October 6, 2023 (“Effective Date”), and will continue indefinitely until either the Seller or Buyer (a) terminates the Agreement with six (6) months’ written notice to the other Party, or (b) otherwise terminates in accordance with the Agreement. Throughout the term of the Agreement and in accordance with its terms, the Seller will provide the Buyer with the described support and monitoring services continuously or upon the Buyer’s request, and will supply products to the Buyer based on separate orders placed with the Company. The minimum quantity of the initial order is 200 units of the Pocket ECG IV devices supplied by the Issuer.
The average annual estimated contract value on a quarterly basis will amount to approximately 120,000 USD based on cooperation scale estimates at the time of signing the Agreement and initiating cooperation.
The Agreement contains standard Representations and Warranties and mutual provisions on Indemnification and Limitation of Liability in accordance with industry standards covering its activities under the Agreement.
Entering into the Agreement with the Distributor represents a significant milestone in the Company’s strategy, as published in the Issuer’s current report no. 16/2023 dated June 19, 2023 (“Strategy”). In executing the adopted strategy, the Company seeks distributors in a non-exclusive model, prioritizing the U.S. market, and the agreement with the Distributor fulfills the Strategy adopted by the Issuer (as an element of its implementation).