Echo IQ Secures A$20 Million Strategic Investment and US Reseller Deal with Pro Medicus

Strategic Investment Links Echo IQ with Healthcare Software Leader

Echo IQ Limited (ASX:EIQ) has taken a major leap forward in its US commercialisation push by signing a binding Heads of Agreement with Pro Medicus Limited (ASX:PME), a global leader in healthcare imaging software. The agreement sets the stage for Pro Medicus to invest up to A$20 million in Echo IQ via secured convertible notes, with an initial A$10 million tranche followed by an optional second tranche contingent on US FDA clearance of Echo IQ’s EchoSolv HF heart failure diagnostic product.

This funding infusion bolsters Echo IQ’s balance sheet at a critical juncture, providing financial firepower to accelerate commercial activities across the US market. The deal also aligns Pro Medicus’ investment with a key regulatory milestone, tying the second tranche to FDA approval, which remains pending but on track.

Pro Medicus to Resell EchoSolv Across US Healthcare Networks

Beyond capital, the partnership offers Echo IQ access to Pro Medicus’ extensive US healthcare footprint. Pro Medicus, renowned for its Visage imaging platform, serves many of the largest health systems, academic medical centres, and integrated delivery networks in the US. Under the proposed reseller arrangement, Pro Medicus would market and distribute Echo IQ’s EchoSolv product suite to this network, potentially accelerating adoption and scaling Echo IQ’s AI-powered cardiac diagnostics.

This commercial collaboration taps into complementary strengths: Echo IQ’s cutting-edge AI detection algorithms for cardiovascular disease combined with Pro Medicus’ proven enterprise software reach. The partnership thus represents a significant strategic validation of Echo IQ’s technology and commercial potential.

Convertible Notes Terms and Investment Structure

The secured convertible notes issued to Pro Medicus carry a 12.5% annual interest rate, compounding daily and payable at maturity, which is 24 months from issue. The notes are secured over all of Echo IQ’s assets, including specific security over its aortic stenosis and heart failure algorithms. Pro Medicus may convert notes into shares at a price capped at A$1.05 or the prevailing five-day volume weighted average price, whichever is lower, subject to a floor price.

Additionally, Pro Medicus will receive unlisted options exercisable at A$1.35 per share, with 0.75 options granted per note subscribed. These options add an equity kicker to the convertible note investment, aligning interests further.

Risks and Regulatory Hurdles Remain

While the deal marks a milestone, several risks remain. FDA clearance of EchoSolv HF is a critical but uncertain regulatory hurdle that will determine the release of the second A$10 million investment tranche. The FDA review process is inherently unpredictable, and additional clinical data or restrictions could delay or limit product approval.

Commercial success in the US will also depend on securing favourable reimbursement pathways through Medicare, Medicaid, and private insurers. Without adequate reimbursement, widespread adoption by health systems could be constrained. Furthermore, the reseller agreement with Pro Medicus is subject to definitive legal documentation and execution, with no guarantee of completion or commercial success.

Echo IQ’s US Expansion Accelerates Amid Growing AI Cardiovascular Market

Echo IQ’s CEO Dustin Haines described the partnership as transformational, highlighting Pro Medicus’ reputation and deep US market penetration as key advantages. This deal complements Echo IQ’s ongoing efforts, including its recent EchoSolv deployment at Mount Sinai Health System and expanded collaboration with Mayo Clinic to validate its AI cardiac risk tools in complex patient populations Echo IQ Teams with Mayo Clinic. These initiatives collectively position Echo IQ to capitalise on the growing clinical and commercial relevance of AI in cardiovascular care.

The partnership with Pro Medicus could unlock a substantial opportunity in the US, the world’s largest healthcare market, by combining innovative AI diagnostics with a trusted healthcare software platform. As Echo IQ awaits FDA clearance and finalises definitive agreements, the market will be watching how this strategic alliance unfolds and whether it can deliver on its promise to scale AI-driven cardiac diagnostics across US health systems.