ASX-listed G Medical Innovations (GMV) has signed a binding MoU with First Channel (FCL) to distribute its devices in both India and Taiwan. The total value of the deal based on minimum commitments is expected to be US$405 million. HealthInvestor Asia reported on the deal last week.

Under the agreement, FCL has agreed to purchase a minimum quantity of units within the first year, with total payments anticipated to be above US$90 million.

For all purchase orders submitted, FCL will obtain a letter of credit from a first class bank. FCL will provide this letter of credit to G Medical at the time of making the purchase order. G Medical will exchange this letter of credit with an Israeli government insurance company to receive immediate payment. This is a facility available to all Israeli companies to assist them with the growth of their businesses.

“Teaming with a strong partner such as FCL, further increase s our purchase commitments for our products and services, and adds to our robust, multi-year revenue stream for the next three years,” said G Medical chief executive Yacov Geva.

Corporate advisors to the deal were Otsana Capita.

After the deal was announced, GMV shares jumped 36% to A$0.53 (US$0.41).