RE:Ventripoint Sees First Commercial Sales In China Through JoiDear Friend;
Attached is a news release giving an update on marketing activities in China. Here is some background:
1. Yutian continues to build out its network of distributors in China, which is a complex place to do business as there are many levels of distribution which have to be established to actually make a sale to a customer.
2. Yutian understands the relationships and continues to sign up top-level distributors who then sign ups the next level and so on. I do not pretend to understand how this all works, but it is significant that they already have projections of $6M in sales this year and the network is only partially built.
3. Part of the process is to engage the customer (cardiologists) and again Yutian has been successful in recruiting top cardiologists and the China Medical Association in this effort to build awareness of the QAS™ (the name of there VMS+ in China). It is anticipated intensive care units will need the QAS to augment existing cardiac ultrasound capabilities especially for right-heart analysis, which is critical to properly assessing patents with COVID. Studies around the world have shown a correlation between the size of the right ventricle and mortality. While COVID seems to be under control in China, there is still a need to gear up for the next wave of COVID or the next coronavirus. Most experts are saying coronaviruses will be with us for many years and maybe forever.
4. Ventripoint has an option to take an equity position in Yutian through a share swap, which it will exercise once Yutian has completed its next round fo financing. In this manner Ventripoint will receive a share of the profits as well as participate in the value creation in Yutian. Ventripoint will also receive a management fee and contracts for development work to build out the central server in China. The efforts in China to date have not cost Ventripoint anything and Yutian has been very supportive by repeatedly investing in Ventripoint in several rounds of financing over the last 6 years.
As always, I thank you for your interest and support as we continue our mission to improve cardiac care for everyone worldwide and especially for children.
Regards,
Dr. George Adams ICD.D
Executive-Chairman
Ventripoint Diagnostics Ltd.
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