11:04 AM EDT, 05/30/2024 (MT Newswires) -- Evome Medical Technologies ( LNDZF ) on Thursday provided an update on its turn-around plan, saying it has grown revenue at its core business unit, Biodex Medical Systems, while reducing total debt significantly for the third straight quarter.

Evome generated 100% revenue growth in its Biodex business unit in April 2024 compared with January 2024. Biodex executed a term sheet with a China market distributor and will receive licensing fees adjusted based on certain volumes, with an initial down payment of US$400,000. This arrangement has the potential to significantly increase nominal earnings contributions from this region in the coming years, the company said.

The company also agreed, subject to execution of a definitive agreement, to grant exclusive rights to the China distributor to sell Biodex products in the entire Asian market, excluding Japan or South Korea. These rights include technology transfer to adapt Biodex products to local regulatory and market needs.

Evome also received an initial purchase order from Veterans Medical Supply (VMS), ahead of a potential sale of its System 4 Pro, Gait Trainer Music Assisted Therapy and Balance SD products to the Veterans Health Administration (VHA). The VHA is the largest integrated health care system in the United States, providing care at 1,321 health care facilities to over 9 million veterans enrolled in the VA health care program.

Going forward, the company expects to have a strong second quarter generating positive adjusted EBITDA.

Evome shares were last seen up $0.01 to $0.17 on the TSX Venture Exchange.

Price: 0.17, Change: +0.01, Percent Change: +6.25