Urban Select Capital has entered into a collaboration agreement with Eidam Diagnostics, a Canada-based manufacturer and distributor of medical devices.
Under the agreement, Eidam has granted Urban Select a ten-year license to distribute its FDA-approved, CE-marked and China Class II certified CRT 2000 thermographic system in the China, Hong Kong and Taiwan regions.
The agreements also has an option to further extend the license for an additional ten years through to 2033.
Urban Select will be compensated according to a net profit sharing agreement with Eidam by which Urban will earn 80% of the net profits and Eidam will earn the remaining 20%.
In addition, Urban Select can earn up to a total of 3 million bonus Eidam common shares based on specific incremental sales milestones being achieved every year from July 2013 to June 2017.
Urban Select Capital board of directors chairman Joseph Fodor said since 2009, China's growth in the medical equipment market has outgained its general economic growth and the company is excited that the government has committed to develop the country's healthcare system to provide universal healthcare access for all by 2020.
"As the country's healthcare industry improves its medical infrastructure systems, we are confident this will lead to increased spending in medical equipment and devices," Fodor added.
" As a result, we feel very privileged to have the opportunity to work together with the team at Eidam Diagnostics to provide the Chinese market with a proven, quality product in the CRT 2000 which addresses critical issues necessary for an ageing population with rising medical costs.
"We look forward to developing a mutually beneficial long-term relationship with Eidam in the China market."
