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iSonea in continuing discussions with Fortune 500 company

iSonea (ASX:ISN) has elaborated on the rationale for the funding arrangement it struck last week with New York-based Bergen Global Opportunity Fund.

Meanwhile, iSonea chief executive officer Mike Thomas said today, that "discussions continue with a Fortune 500 company about the Memorandum of Understanding (announced in August) for distribution of the WheezoMeter™ in the USA."

Thomas said, "consummating such an agreement is a top priority for the company, and it is our goal to have a deal closed by the end of this calendar year."

Bergen Global Investment

Bergen Global has committed to a $10.6 million anchor investment as iSonea readies for listing in the U.S. in the fall on the OTC-QX and develops its products in the multi billion dollar asthma monitoring and management market.

With the funding iSonea is moving to next phase of its commercial development of its Acoustic Respiratory Monitoring technology in key asthma markets such as the U.S. to gain widespread reimbursement and physician adoption of this new technology.

The company said it believes "that a meaningful upfront investment from a US institution, with a meaningful investment commitment agreed to follow, validates the company’s business model and helps to raise iSonea’s profile in the US financial markets, as well as in the US medical device and healthcare technology industries."

The investment of up to AU$10.6 million will be made in two parallel instruments:

- A$1 million lump sum investment via an unsecured convertible instrument with a face value of AU$ 1.12 million – this transaction has settled, and the Company has received the funds
- Up to A$9.6 million over a period of 24 months, by way of Bergen’s payment for additional ordinary shares

Bergen Global has stated its commitment is to invest in iSonea and dollar cost average its investment, allowing the shares to appreciate as the company hits various future milestones.

iSonea has developed an innovative solution to a major medical need, enabling effortless, ongoing monitoring of asthma symptoms for more successful patient outcomes.

This technology represents a new standard of care for disease management and could lead to a strategic acquisition by a pharmaceutical or respiratory device company.