CurveBeam AI Limited (ASX: CVB) Establishes Major China Partnership

CurveBeam AI Limited (ASX: CVB) has executed significant definitive agreements, establishing a major CurveBeam AI China Partnership with Shandong WeiYing Intelligent Medical Technology Co., Ltd. This strategic alliance provides A$10 million in growth capital and grants exclusive rights across China, Hong Kong, Macau, and Taiwan for CurveBeam’s advanced weight bearing CT technology and AI solutions. The partnership marks an important expansion into one of the world’s largest medical device markets, positioning the company for accelerated global growth.

This key investor update details a comprehensive 10-year collaboration. It combines CurveBeam AI’s proprietary medical imaging technology with its Partner’s extensive distribution network and manufacturing capabilities across China’s 38,000-hospital market. Under the agreements, CurveBeam AI is set to receive an initial A$4 million within 30-60 days, followed by milestone-based payments totalling A$6 million linked to commercial and regulatory achievements.

Strategic Framework for the CurveBeam AI China Partnership

The structure of this CurveBeam AI China Partnership establishes multiple strategic advantages through a comprehensive suite of binding agreements. These agreements cover intellectual property, manufacturing, distribution, and equity investment components. Each element works synergistically to accelerate CurveBeam AI’s market penetration whilst ensuring sustainable long-term growth.

Core Agreement Components:

• Intellectual Property Collaboration and Licence Agreement: Grants exclusive technology rights.
• Manufacturing Licence Agreement: Enables local production capabilities.
• Distribution Agreement: Establishes exclusive sales and marketing rights.
• Share Subscription Agreement: Provides growth capital with performance milestones.
• Voluntary Escrow Deed: Aligns long-term partnership interests.

This collaboration will be overseen by a Joint Steering Committee with equal representation from both parties. This ensures strategic alignment and effective decision-making throughout the partnership lifecycle.

Furthermore, the agreements establish clear regulatory responsibilities. CurveBeam AI will handle approvals for US-manufactured products, whilst the Partner manages Chinese regulatory requirements for locally produced devices.

Key Financial Highlights:

How Will This Partnership Drive CurveBeam AI Expansion in China?

This partnership delivers significant advantages across operational, financial, and strategic dimensions. These elements position the company for accelerated growth and improved profitability within the competitive medical technology sector.

Immediate Market Access Benefits:
The partnership provides rapid entry into China’s massive medical imaging China market, which encompasses approximately 38,000 hospital sites. This represents significant commercial opportunities. This immediate access bypasses traditional market entry barriers and accelerates time-to-market for CurveBeam’s innovative weight bearing CT technology.

Capital Injection with Minimal Dilution:
The equity investment structure provides A$10 million in growth capital at a fixed share price of A$0.405 per share. This represents approximately 5% dilution at full subscription. This favourable pricing supports continued operational expansion whilst preserving shareholder value through minimal equity dilution. The impact on CVB shares on issue and CurveBeam AI market capitalisation is considered manageable given the substantial growth capital infusion.

Operational Scale and Cost Optimisation:
This collaboration addresses structural gross profit challenges by enabling localised Asian manufacturing, significantly reducing import costs outside the US market. This operational enhancement strengthens CurveBeam AI’s global supply chain whilst providing cost advantages for international expansion.

Additionally, the partnership enables dual manufacturing capabilities in both US and China locations. This provides tariff risk mitigation and operational flexibility across global markets.

Commercial Validation and Market Leadership:
Recognition as a technology leader in weight bearing CT and AI imaging within one of the world’s largest medical device markets provides significant commercial validation. This partnership establishes CurveBeam AI’s credentials for future international expansion opportunities.

How Does the Partnership Influence Revenue Generation?

The comprehensive partnership framework establishes multiple revenue streams. These streams are designed to maximise CurveBeam AI’s market penetration whilst ensuring sustainable long-term growth through performance-based milestone achievements and industry-standard royalty structures.

Investment Structure and Dilution Management:
The equity investment operates on a milestone-driven structure that aligns partner incentives with CurveBeam AI’s commercial success. Shares will be issued at a fixed price of A$0.405, providing price certainty whilst ensuring the Chinese partner remains committed to achieving performance targets.

Escrow Provisions for Long-term Alignment:
Each tranche of shares issued will be held subject to 24-month voluntary escrow. This prevents immediate share sales and supports long-term partnership stability. This structure ensures both parties remain focused on sustainable growth rather than short-term gains.

Royalty Stream Development:
The manufacturing licence agreement establishes industry-standard royalty payments on Chinese-produced devices. This creates a long-term revenue stream that supports market penetration whilst maintaining profitability. These royalties will be applied as credits for products purchased from the Partner, optimising cash flow management.

Volume-Based Procurement Alignment:
Local manufacturing supports compliance with China’s Volume-Based Procurement policy, which now extends to imaging devices. This regulatory alignment positions CurveBeam AI advantageously for institutional procurement opportunities across the Chinese healthcare system.

CEO Greg Brown commented: “Formalising this strategic partnership represents an important milestone for CVB. Partnering with an established Chinese medical device manufacturer and distributor positions us to significantly accelerate adoption of our platforms and AI solutions across China and the entire globe.”

What Are the Diagnostic Benefits of Weight Bearing CT Technology?

Weight bearing CT technology represents an advanced method in musculoskeletal imaging. It enables patients to be scanned whilst standing naturally, providing clinicians with crucial diagnostic information impossible to obtain through traditional CT or MRI scanning methods.

Traditional vs. Advanced Imaging:
Conventional CT and MRI scanners require patients to lie down during imaging, showing bones and joints in an unloaded position. In contrast, weight bearing CT captures how joints and bones function under normal loading conditions. This reveals pathologies that may only be apparent when weight is applied to the joint.

Clinical Advantages:
This advanced approach enables orthopaedic surgeons to identify conditions such as foot deformities, ankle instability, and joint alignment issues that remain hidden in traditional prone-position scans. The HiRise™ scanner performs both weight bearing and traditional CT scans, making it a versatile solution for medical facilities seeking enhanced diagnostic capabilities.

Market Opportunity:
The global orthopaedic imaging market is experiencing rapid growth driven by an ageing population and increasing sports-related injuries. CurveBeam AI’s proprietary technology and associated AI solutions create a differentiated market position with high barriers to entry, supporting premium pricing and long-term competitive advantages.

Innovation Acceleration:
This partnership enables more cost-effective development of next-generation imaging devices through collaborative research and development efforts. This accelerated innovation pipeline strengthens CurveBeam AI’s technology leadership whilst expanding addressable market opportunities.

The 10-Year Strategic Timeline for Growth

This partnership establishes a comprehensive roadmap for expansion across Chinese territories. It includes clearly defined milestones and responsibilities designed to maximise market penetration whilst maintaining operational excellence throughout the collaboration period.

Immediate Implementation Phase (Next 30-60 Days):
The partnership commences with A$4 million capital injection upon agreement execution. This provides immediate working capital for operational scaling. Establishment of the Joint Steering Committee with equal representation ensures effective governance and strategic alignment from day one.

Short-Term Objectives (Years 1-2):
The Partner begins exclusive distribution activities across China, Hong Kong, Macau, and Taiwan. It will target the first sales milestone of A$4.6 million in HiRise™ sales to trigger the A$1 million milestone payment. Minimum sales targets will be agreed annually on a product-by-product basis, ensuring focused commercial execution.

Medium-Term Goals (Years 3-5):
Commercial scaling targets A$23 million in HiRise™ sales to trigger the A$2 million milestone payment, demonstrating significant market penetration. Regulatory approvals for Chinese-manufactured products will be completed alongside the launch of next-generation imaging devices developed through the collaboration.

Long-Term Vision (Years 5-10):
This ASX announcement details a partnership aiming to establish market leadership in the Chinese weight bearing CT market whilst generating consistent royalty streams from locally manufactured devices. Completion of all regulatory and product development milestones will trigger the final A$3 million in payments, representing full partnership maturation.

Performance Tracking Framework:

• Immediate: A$4M funding secure!

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