Mainboard-listed Broadway Industrial Group announced today that it has entered into a US$1 million ($1.3 million) convertible loan agreement with a US medical technology company, Insituvue Inc., the developer of Sonic Flashlight which gives doctors a better view during interventional procedures, such as the inserting catheters and intravenous drips (IVs).
Broadway has agreed to extend the US$1 million unsecured loan to Insituvue in three tranches over a period of 12 months. At any time beginning from Sept 26, Broadway has the right to convert, the outstanding principal amount and the interest accrued thereon, in whole or in part, into ordinary shares of Insituvue. The outstanding principal loan amount will accrue interest at an annual rate of 5%.
“Our agreement with Insituvue will enable Broadway to participate in the development of a promising new technology and provide a platform for us to penetrate into the medical industry. This is part of our business diversification strategy to partner technology companies with unique products and capabilities to break into new markets,” says Wong Sheung Sze, Group Executive Chairman.
Developed by the University of Pittsburgh, the Sonic Flashlight uses a transducer probe that sends ultrasound waves into the body and creates a three-dimensional view into the body. The device will enable doctors to see the needle at the point of entry during interventional procedures, thus lowering procedural time and risk. Insituvue was established in February 2010 to commercialise this technology and conduct research & development on new ultrasound technologies for interventional procedures.
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