Capitol Health
(ASX:CAJ) has entered into an equity joint venture agreement with two companies in China – CITIC Pharmaceutical and the Xiamen Zhouxin Medical Image Co.
This agreement is for the provision of consulting and clinic management services to a network of independent imaging clinics across the Chinese mainland. And the name of the joint venture will be the China-Australia Medical Imaging (Shenzen) Co Ltd.
Capitol will own a 30% stake in this JV, contributing around $600,000, while CITIC and Zhouxin will own 60% and 10% respectively.
The company says this JV is a solid opportunity to enter the fast growing diagnostic imaging market in China.
Capitol Health will release its audited half year results to the market on 28 February.
The company posted a net loss of $4.7 million at 30 June 2016.
