Algernon Health (CSE:AGN, OTCQB:AGNPF) told investors it has signed a C$4 million equipment order and financing agreement to acquire brain scanning systems that will be used in Algernon’s planned neuroimaging centres, which will be focused on early-stage Alzheimer’s detection.
The agreement is with Catalyst MedTech to deploy four Oncovision CareMiBrain PET scanner systems at new clinics across the United States.
It enables Algernon to finance the scanners with a 20% deposit, followed by a schedule of monthly payments, with a balloon payment due after two years.
Each scanner accounts for about 80% of each clinic's setup costs, so the order marks a meaningful step forward in Algernon's planned roll out.
“We are pleased to be working with Catalyst MedTech and acquiring this groundbreaking technology for our planned neuroimaging clinics, which improves patient access and experience, and reduces radiation exposure by up to 25% compared to full-body PET/CT units currently in use,” said Algernon chief executive Christopher Moreau.
“These will be the very first CareMiBrain systems purchased for operation in the US or anywhere else in the world, and Catalyst MedTech’s extensive experience in nuclear medicine, and specifically the provision and servicing of nuclear imaging equipment, as well as their extensive business solutions consulting, will dramatically assist us in fully realizing our new neuroimaging initiative effectively and efficiently."
Martin Shirley, Catalyst MedTech chief executive, added: "We have been very impressed with Algernon’s management team as well as their visionary commitment to provide these new optimized brain PET scanners by way of pioneering, stand-alone, brain imaging medical clinics across the U.S.”
Algernon is establishing a network of neuroimaging clinics across North America and also, separately, owns Algernon NeuroScience, which is advancing a DMT-based psychedelic program.
The planned clinics will also provide scans for dementia, epilepsy, neuro-oncology, and movement disorders.