Pro Medicus Ltd Backs Echo IQ in Up to A$20M Medtech Deal
Pro Medicus backs Echo IQ with up to A$20 million in strategic medtech tie-up
Echo IQ Limited (ASX: EIQ) has executed a Binding Heads of Agreement with Pro Medicus Limited (ASX: PME), one of the world’s leading enterprise medical imaging companies, establishing the framework for a strategic investment of up to A$20 million alongside a proposed US reseller partnership for the EchoSolv product suite.
Announced on 25 June 2026, the proposed structure comprises an initial A$10 million investment, with an option for a further A$10 million tranche conditional on US Food and Drug Administration (FDA) clearance of EchoSolv HF. Echo IQ states the arrangement validates its AI-powered cardiovascular diagnostic technology and that the company is now fully funded to support US commercialisation activities.
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What the Pro Medicus deal delivers for Echo IQ
The arrangement has two distinct components: a strategic investment and a proposed commercial partnership. Both remain subject to the finalisation of definitive legal documentation, with the company noting that there can be no assurance any final agreement will be reached.
The key terms of the framework include:
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Initial A$10 million investment via secured convertible notes
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An option for a further A$10 million tranche upon FDA clearance of EchoSolv HF, which Pro Medicus is not obliged to take up even if clearance is obtained
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Pro Medicus to become a proposed reseller of EchoSolv across the United States, subject to definitive agreements
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Additional balance sheet strength to seek to accelerate US commercialisation
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Transaction completion expected “in the coming weeks”
Aligning a heavyweight imaging player with Echo IQ’s diagnostic technology carries strategic weight beyond the capital itself. The proposed partnership offers potential access to Pro Medicus’ extensive network of US health systems, academic medical centres and enterprise healthcare customers, while signalling clinical validation of EchoSolv within cardiovascular care.
Inside the secured convertible note terms
The following terms relate specifically to the Pro Medicus convertible note investment into Echo IQ. Each figure applies to the note instrument under the proposed framework.
| Term | Detail |
|---|---|
| Noteholder | Pro Medicus Limited |
| Initial issue | 10,000,000 Notes at A$1 face value (A$10m) |
| Second tranche | Additional 10,000,000 Notes (A$10m), conditional on FDA clearance of EchoSolv HF |
| Interest rate | 12.5% p.a. compounding daily, payable at maturity or upon mandatory redemption |
| Maturity | 24 months from date of issue |
| Conversion price | Lower of A$1.05 (Valuation Cap) or 5-day VWAP, subject to a floor price |
| Options | 0.75 unlisted options per Note, exercise price A$1.35, expiring at maturity, subject to a minimum exercise of 1,000,000 options |
| Security | Granted over all group assets, with specific security over the aortic stenosis and heart failure algorithms |
The issuance does not require shareholder approval, as it is being made under the company’s available placement capacity under ASX Listing Rule 7.1. Echo IQ has flagged that the proposed convertible note structure may result in dilution to existing shareholders upon conversion, with the terms of conversion remaining subject to finalisation in the definitive documentation.
Why Pro Medicus matters as a partner
Pro Medicus is widely regarded as one of Australia’s most successful healthcare technology companies and a global leader in enterprise medical imaging software through its Visage platform. For over 30 years, it has built a track record serving many of the largest US health systems, academic medical centres and integrated delivery networks.
A reseller arrangement means Pro Medicus would market and distribute EchoSolv to its existing customer base, potentially giving Echo IQ a route into the world’s largest healthcare market. For a small-cap medtech, access to an established enterprise platform represents a meaningful commercial pathway.
Pro Medicus has been securing major US enterprise imaging contracts at pace, including a A$90M, 7-year full-stack cloud deployment across a 14-hospital Boston health system, illustrating the scale of the customer relationships Echo IQ would be seeking to access through the proposed reseller arrangement.
For non-specialist readers, EchoSolv is an AI-powered cardiac diagnostic tool designed to support decision-making in cardiology. Its applications include the detection of aortic stenosis and heart failure.
CEO Dustin Haines on a “transformational milestone”
Dustin Haines, CEO, Echo IQ
“The execution of this binding Heads of Agreement with Pro Medicus represents a transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US.”
Haines added that the proposed partnership extends “far beyond the investment itself.” He pointed to the opportunity to leverage Pro Medicus’ established healthcare platform, trusted customer relationships and experienced commercial organisation with deep penetration into the US healthcare market.
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What happens next
The arrangement remains in a proposed phase, with several conditions to satisfy before either party can activate the investment or distribution components. Near-term milestones include:
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Finalisation of definitive legal documentation, with transaction completion expected “in the coming weeks.”
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The EchoSolv HF FDA submission, which remains on track for an expected outcome “in the near term.”
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FDA clearance, which would unlock Pro Medicus’ option to invest the second A$10 million tranche, noting that Pro Medicus is not obliged to take it up even if clearance is obtained.
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Negotiation and execution of definitive reseller agreements to activate US distribution.
FDA clearance of EchoSolv HF is framed as a key potential value catalyst, with the investment structure deliberately aligned to that regulatory outcome. Echo IQ states it is now fully funded to support its US commercialisation activities, though the second tranche and the reseller arrangement remain conditional on the matters outlined above.
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