MYO - Myomo rallies on JV to manufacture and sell products in China

Myomo (MYO) surged 27% in premarket trade after it inked a joint venture agreement with Beijing Ryzur Medical Investment for manufacturing and selling the company's current and future products in greater China, including Hong Kong, Macau and Taiwan.Majority ownership in the JV, to be named Jiangxi Myomo Medical Assistive Appliance will be held by Beijing-based Ryzur Medical, growing medical device manufacturer, and Chinaleaf Capital Management growth opportunities in new technologies.Myomo will own a minimum 19.9% stake in the JV.Ryzur Medical and its partners have committed to invest a minimum of $8M and up to $20M in the JV over five years, and when established, the JV intends to enter into a 10-year agreement to license Myomo's intellectual property and purchase MyoPro Control System units.Under the license agreement, Myomo would be entitled to receive an upfront license fee of $2.5M and the JV would enter into an escalating purchase commitment for a minimum of $10.75M in MyoPro Control System

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Myomo rallies on JV to manufacture and sell products in China