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Be the first with the news that moves the market- Medical technology company, DIAGNOS (ADK) has received an interest-free loan of up to C$2 million from the government of Quebec
- The company intends to use the money to support the global commercialisation of its AI engine, CARA
- DIAGNOS’ loan has a ten-year term, with principal repayment starting two years after the government pays the first loan instalment
- The company estimates that it will save up to $1.35 million, as a result of the loan being interest-free
- DIAGNOS (ADK) is down 3.77 per cent and is currently trading at 26 cents per share
Medical technology company, DIAGNOS (ADK) has received an interest-free loan of up to C$2 million from the government of Quebec.
The loan came via the provincial government’s Economic Development Fund. DIAGNOS signed a financing agreement with the government, in order to support the global commercialisation of its AI engine, CARA.
CARA (Computer Assisted Retina Analysis) is a tele-ophthalmology platform that integrates with pre-existing hardware or software. The tool’s image enhancement algorithms make standard images of a person’s retina sharper, clearer, and easier to read.
The company’s CARA commercialisation project is currently valued at just over $4 million, half of which will be covered by the loan.
Under the financing agreement, Quebec’s government will begin disbursing loan instalments corresponding to 49 per cent of eligible expenses incurred up to June 30, 2020, up to $2 million.
The loan has a ten-year term, with DIAGNOS set to begin repayments 24 months after the government’s first loan disbursement. The company estimates that by being interest-free, the loan will save it from up to $1.35 million in financing costs.
DIAGNOS’ President, André Larente, described what the governmental loan has made possible for the company.
“Thanks to this financial assistance from the government of Quebec, we will be able to accelerate the commercialisation of CARA in markets where the prevalence of diabetes and its complications is high.
“Among other things, teams of professionals dedicated to marketing and commercialisation will be set up to cover each of these markets.
“We would like to thank the people of the government and Investissement Québec for their trust in our team and our innovative screening technology for diabetic retinopathy, a disease that can cause blindness if left untreated,” he said.
DIAGNOS (ADK) is down 3.77 per cent, and trading for 26 cents per share at 1:43pm EDT.
