- E-health specialist G Medical Innovations (GMV) has pocketed a US$800,000 loan from U.S. coronavirus relief packages
- If G Medical puts the funds towards payroll, mortgages, and utilities, it’s likely the entire amount will be eligible for debt forgiveness
- This means the company won’t need to pay back a cent
- Importantly, G Medical says the funds free up the company’s other resources to keep expanding through the States
- The company has already reached some important milestones in the U.S. for its mobile-based health tracking device, Prizma
- Shares in G Medical are trading just over one per cent higher today, currently worth almost eight cents each
E-health specialist G Medical Innovations (GMV) has pocketed over A$1 million from U.S. coronavirus relief packages.
The company told shareholders today it has received a US$800,000 (roughly A$1.21 million) loan from the Paycheck Protection Program and the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the States.
Importantly, receiving these funds under the care packages means the full US$800,000 is eligible for loan forgiveness.
Should the funds be used to pay for payroll costs, interest payments on mortgages, rent or utilities, there’s a good chance G Medical won’t need to pay back a cent.
The company said this is precisely what it plans to put the new money towards.
Importantly, however, the government funding frees up other GMV resources to continue expanding its mobile phone-based health services across the U.S.
The company’s flagship Prizma device is designed to turn your mobile phone into a medical monitoring and diagnostic device. Through a phone case and an app, the device can monitor temperature, heart rate, stress levels, blood oxygen saturation, and more.
Already, this year has seen GMV kick some key goals in the States, including special Food and Drug Administration (FDA) over-the-counter approval for its Prizma device in April and FDA approval for its electrocardiogram (ECG) patch for treating COVID-19 earlier this week.
G Medical CEO Dr Yacov Geva said today’s loan allows the company to continue its rapid growth in the U.S.
“We have made considerable inroads in the U.S. market recently and are confident that this will continue,” Yacov said.
“The company’s devices and platforms are a scalable and cost-effective solution that can be deployed to immediately ease the burden on healthcare systems. This is becoming well recognised throughout the U.S. and other target markets and we are confident of broad uptake in the coming months,” he said.
Shares in G Medical are trading 1.3 per cent higher today for 7.8 cents each.