Pro Medicus Ltd Backs Echo IQ With Up to A$20M AI Cardiology Deal
Pro Medicus backs Echo IQ with up to A$20 million in landmark AI cardiology deal
Pro Medicus Limited (ASX: PME) has signed a binding Heads of Agreement with Echo IQ Ltd (ASX: EIQ) on 25 June 2026, establishing the framework for a proposed strategic investment of up to A$20 million alongside an accompanying US reseller agreement.
The proposed financing is structured as an initial A$10 million, followed by an option for PME to invest a further A$10 million tranche, subject to conditions. The arrangement is designed to support the development and commercialisation of Echo IQ’s AI-powered cardiovascular diagnostic algorithms for aortic stenosis and heart failure.
Crucially, the Heads of Agreement provides for definitive legal agreements to be negotiated and entered into within the next 20 business days, failing which the transaction may be terminated. Echo IQ noted that definitive documentation is being finalised, with completion expected “in the coming weeks.”
For Pro Medicus, the proposed deal extends its established AI strategy. Subject to definitive agreements, it would give Visage 7 Cardiology customers the option to access Echo IQ’s algorithms targeting aortic stenosis and heart failure.
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Inside the deal structure
The transaction comprises two distinct components: a secured convertible note investment, and a proposed US reseller arrangement. The investment itself would be made via secured convertible notes, not an equity placement or share subscription.
Under the agreed framework, PME would make an initial investment by subscribing for 10,000,000 Notes with a face value of A$1 per Note. A further 10,000,000 Notes could be subscribed for, but only if FDA clearance is obtained for Echo IQ’s heart failure algorithm. PME holds an option, not an obligation, to invest this second tranche.
The Notes are secured over all assets of Echo IQ and its subsidiaries, with specific security granted over the company’s aortic stenosis and heart failure algorithms. Key terms of the proposed convertible notes are summarised below.
| Term | Detail |
|---|---|
| Noteholder | Pro Medicus Limited |
| Securities | Secured unlisted convertible notes, secured over all assets plus specific security over aortic stenosis and heart failure algorithms |
| Subscription | Initial 10,000,000 Notes at A$1 face value; further 10,000,000 Notes conditional on FDA clearance of the heart failure algorithm |
| Maturity | 24 months from date of issue |
| Interest rate | 12.5% per annum, compounding daily |
| Conversion price | Lower of A$1.05 (Valuation Cap) or the 5-day VWAP, subject to a floor price |
| Options | 0.75 unlisted options per Note, exercise price A$1.35, exercisable until Maturity |
A key structural point for investors to note regarding the issuance:
- The issue of the secured convertible notes to Pro Medicus does not require Echo IQ shareholder approval, as it relies on the company’s available placement capacity under ASX Listing Rule 7.1.
A reseller partnership into the US healthcare market
The second component is a proposed reseller arrangement. Subject to the finalisation of definitive legal documentation, Pro Medicus would market and distribute Echo IQ’s EchoSolv product suite throughout the United States.
This would provide Echo IQ with potential access to PME’s network of leading US health systems, academic medical centres and enterprise healthcare customers via the Visage platform. Pro Medicus is widely regarded as a global leader in enterprise medical imaging software, with over 30 years of track record across demanding clinical environments.
The proposed arrangement aligns with PME’s stated AI strategy, which blends in-house algorithms, those developed with clinical partners, and third-party solutions such as Echo IQ’s.
Clients renewing with Pro Medicus have increasingly been adding cardiology imaging modules to their enterprise contracts, a pattern illustrated by the Ohio State University Wexner Medical Center renewal that expanded Visage 7 to include both Workflow and Cardiology Imaging.
Dr Sam Hupert, Pro Medicus CEO
“In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ’s technology… This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and 3rd party algorithms such as Echo-IQ.”
What EchoSolv does and why AI cardiology matters
Echo IQ uses AI-driven technology and proprietary software to improve decision-making in cardiology. Its algorithms target two significant conditions: aortic stenosis and heart failure.
For investors, AI-enabled cardiac diagnostics represents a growing segment within healthcare technology. In the United States, the world’s largest healthcare market, FDA clearance and reimbursement pathways are typically key value drivers for medical software products.
EchoSolv HF is Echo IQ’s heart failure algorithm. According to the company, its FDA submission remains on track for an expected outcome in the near term. This regulatory milestone is the trigger for PME’s potential second A$10 million tranche.
The investment logic can be summarised as follows:
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The note structure aligns PME’s deeper participation with FDA clearance, a key potential value catalyst for Echo IQ.
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The reseller channel creates a commercialisation pathway distinct from the financing component.
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Conditions, timeline and what comes next
The transaction remains conditional and subject to definitive documentation. Both companies have been clear that, while they are working towards agreeing the definitive legal documentation, there can be no assurance that any agreement will be reached.
Key conditions and dependencies include:
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Definitive legal documentation is still to be finalised, with no assurance that agreements will be reached within the 20 business day window.
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The second A$10 million tranche is conditional on FDA clearance of EchoSolv HF, which has not yet been obtained. PME is not obliged to invest even if clearance is granted.
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The EchoSolv HF FDA outcome is expected in the near term.
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Transaction completion is expected “in the coming weeks.”
For investors, the proposed arrangement marks a milestone that Echo IQ describes as validating its technology, while reflecting Pro Medicus’s measured, strategic approach to AI partnerships. The opportunity is material, but the conditional nature of both the financing and the reseller arrangement should be weighed accordingly.
Dustin Haines, Echo IQ CEO
“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.”
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