CurveBeam AI Limited (ASX: CVB) Announces Key China Market Expansion and Equity Investment

CurveBeam AI Limited (ASX: CVB) has executed definitive agreements marking notable progress in its global expansion strategy through a broad-ranging 10-year collaboration with Shandong WeiYing Intelligent Medical Technology Co., Ltd. These CurveBeam AI China expansion agreements provide exclusive access to China’s medical device market whilst including provisions for up to A$10 million in equity investment for the Australian medical technology company.

This important agreement positions CurveBeam AI to accelerate commercialisation of its advanced weight-bearing CT (WBCT) technology and proprietary AI solutions across China, Hong Kong, Macau, and Taiwan. This region represents approximately 38,000 hospital sites and access to one of the world’s largest medical device markets.

Important Alliance Opens China’s Medical Device Market

The binding CurveBeam AI China expansion agreements establish a long-term focused collaboration. This alliance combines CurveBeam AI’s proprietary WBCT and AI solutions with the Partner’s extensive distribution network, manufacturing capacity, and regulatory expertise within the Chinese medical device sector.

Shandong WeiYing represents a joint venture between Shandong Weigao Haixing Medical Device Co., Ltd and other established Chinese commercialisation partners. Furthermore, the alliance provides immediate access to WEGO Orthopaedics’ distribution network, which is recognised as China’s largest domestic orthopaedic device supplier by market share.

The full agreement structure covers five key operational areas: manufacturing and distribution rights, intellectual property collaboration, regulatory frameworks, and milestone-based equity investment. This serves as an investor update on the company’s operational advancements.

What are the financial details of the CurveBeam AI China expansion for investors?

The equity investment totalling A$10 million follows a detailed milestone-based structure. This structure is designed to align partner interests with commercial performance, supporting the company’s financial planning.

Shares will be issued at $0.405 per share, representing approximately 5% of CurveBeam AI’s current issued share capital when fully diluted. Based on this, the total issued shares on a fully diluted basis are approximately 493,827,160 shares.

Each share tranche will be held under voluntary escrow for 24 months to ensure long-term alignment between partners, influencing the CurveBeam AI share price stability over this period.

How does CurveBeam AI’s (ASX: CVB) technology address the orthopaedic imaging market?

Weight Bearing CT (WBCT) technology addresses important limitations in traditional diagnostic imaging by allowing patients to stand during scanning procedures. Unlike conventional CT scans or MRIs requiring patients to lie down, WBCT captures images of bones and joints under natural weight-bearing conditions.

This capability is particularly important for diagnosing foot, ankle, and lower limb conditions where weight distribution significantly affects anatomical alignment. Traditional imaging methods may miss pathologies that only manifest under weight-bearing conditions, potentially leading to misdiagnosis and suboptimal treatment outcomes.

CurveBeam AI’s HiRise™ scanner combines this advanced imaging capability with proprietary AI algorithms. This creates a diagnostic solution that supports clinical decision-making whilst potentially reducing healthcare costs through improved treatment precision. The technology addresses a $2.8 billion global orthopaedic imaging market with enhanced diagnostic capabilities.

How Will the China Partnership Modify CurveBeam AI’s Operations?

The CurveBeam AI China expansion agreements lead to operational shifts across multiple dimensions for CurveBeam AI, as detailed in this ASX announcement:

Manufacturing and Distribution Structure

• Exclusive manufacturing licence for Chinese production within designated territories.
• Exclusive distribution rights spanning 10 years across Greater China regions.
• Dual supply arrangement enabling the Chinese partner to supply CurveBeam AI for global markets outside the designated territories.
• Market-standard royalties with a cascading structure based on sales volumes.

Intellectual Property and Technology Collaboration

• A Joint Steering Committee with equal representation will ensure collaborative decision-making.
• Non-compete clauses prevent the partner from manufacturing competing products.
• Singapore law governance applies to operational agreements, with Australian law governing equity components.

CEO Greg Brown commented on the alliance’s importance: “Partnering with an established Chinese medical device manufacturer and distributor positions us to significantly accelerate the adoption of our platforms and AI solutions across China and globally. The structure of this collaboration ensures alignment through equity participation, local manufacturing, and milestone-based performance.”

What are the immediate financial advantages for CurveBeam AI Investors?

The CurveBeam AI China agreements provide immediate and long-term financial advantages. This is a key financial report element for stakeholders.

Capital Injection with Minimal Dilution

An A$4 million upfront payment within 30-60 days provides immediate working capital for operational expansion whilst maintaining a clean balance sheet structure. The total equity dilution of approximately 5% represents minimal impact relative to the notable capital injection and market access benefits.

Revenue Diversification and Margin Improvement

• Local manufacturing in China is expected to reduce import costs and improve gross margins.
• Long-term royalty streams from Chinese-manufactured devices are intended to support sustainable revenue growth.
• A dual manufacturing strategy between the US and China is planned to mitigate tariff exposure risks.

Operational Scale and Cost Optimisation

The alliance addresses structural gross profit challenges associated with high import costs outside the US by localising manufacturing in Asia. This planned positioning supports supply chain diversification and improves global operational resilience.

What is the market opportunity for CurveBeam AI in the Chinese medical device sector?

China represents one of the world’s largest and fastest-growing medical device markets, with approximately 38,000 hospital sites targeted for CurveBeam AI’s technology deployment. The alliance provides commercial validation of CurveBeam AI as a technology leader in WBCT and AI imaging within this substantial market.

This collaboration is designed to support compliance with China’s Volume-Based Procurement (VBP) policy, now extending to imaging devices. This regulatory framework emphasises cost-effective healthcare solutions whilst maintaining quality standards. This positions CurveBeam AI’s technology favourably within the policy structure.

Furthermore, these CurveBeam AI China expansion agreements are expected to enable accelerated innovation through more cost-effective and faster design, development, and commercialisation of next-generation imaging devices globally.

Alliance Details and Governance Structure

The full agreement suite comprises five key documents: Share Subscription Agreement, Escrow Agreement, Intellectual Property Collaboration and Licence Agreement, Distribution Agreement, and Manufacturing Licence Agreement.

What Regulatory Framework Governs the Alliance?

CurveBeam AI retains responsibility for seeking, obtaining, and maintaining regulatory approval in the territories for US-manufactured products. In contrast, the Chinese partner assumes responsibility for regulatory matters concerning Chinese-manufactured products under the Manufacturing Licence Agreement.

This division of regulatory tasks ensures specialised expertise applies to each manufacturing jurisdiction whilst maintaining compliance standards across all territories. The structure supports efficient regulatory navigation within China’s evolving medical device approval framework.

Long-term Collaboration Structure

The 10-year initial term for licensing agreements ensures long-term market commitment whilst providing flexibility for performance evaluation through annually agreed minimum sales targets on a product-by-product basis.

The Joint Steering Committee structure with equal representation from both parties ensures collaborative oversight whilst maintaining planned alignment between partners throughout the collaboration period.

Why Does the WEGO Orthopaedics Alliance Matter?

WEGO Orthopaedics’ recognition as a leading Chinese orthopaedic implant manufacturer provides important commercial validation for CurveBeam AI’s technology platform. The company holds the largest domestic market share among Chinese orthopaedic device suppliers.

WEGO Orthopaedics has established a fully integrated R&D and manufacturing system, equipped with internationally advanced facilities and modern project management capabilities. This infrastructure provides immediate operational capacity for CurveBeam AI’s manufacturing requirements without requiring notable capital investment in new facilities.

Through continuous innovation and product iteration, WEGO Orthopaedics has developed a broad and diversified product line meeting the full spectrum of clinical needs in orthopaedic surgery. This clinical expertise complements CurveBeam AI’s imaging technology, creating synergies across the diagnostic and treatment continuum.

Future Growth Trajectory and Market Expansion

These CurveBeam AI China agreements represent more than market entry. They establish CurveBeam AI as a truly global medical technology company with infrastructure, alliances, and capital to capture notable market share in the world’s second-largest economy whilst strengthening its competitive position globally.

Near-term Commercial Milestones

Completion of the initial A$4 million payment within 60 days will provide immediate capital for operational expansion. Regulatory approval submissions for Chinese market entry will commence alongside manufacturing setup initiation in Chinese facilities. These initiatives target the first commercial sales milestone of A$4.6 million. The milestone structure creates clear performance benchmarks whilst incentivising both partners to accelerate market penetration. Each successive milestone enables further investment.

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