Relay Medical Corp (CSE: RELA) early this morning released an update related to its joint venture with Fio Corporation, known as Fionet Rapid Response Group or FRR. The venture has signed a manufacturing agreement with Keytronic (NASDAQ: KTCC), an FDA approved and US based contract manufacturer, for the production of the firms rapid response devices.
The joint venture currently has ordered the production of 1,000 units of its Fionet device from Keytronic, with the manufacturing line currently in the process of being set up. Initial production runs are expected this month, the the total production time estimated to be 6-8 weeks for the first run.
The production of the devices marks a milestone for the firm, following several trial deployment agreements being signed for the device. One trial includes a subsidiary of a large European diagnostics firm which upon a successful feasibility pilot could potential result in what is referred to as “volume deployments” throughout Africa. The trials are designed so that clients and the Fionet Rapid Response Group can customize the device for rion-based workflows and stress testing.
“In August, we focused on implementing our vision for adapting Fionet to COVID. In September, we focused on bringing this vision to the market, which resulted in agreements for initial deployment we are signing. We now moved to engage a high-quality, high-volume manufacturer to fulfill orders.”Dr Michael Greenberg, CEO of FRR
Upon these successful trials, order flow is evidently expected to demand high volume manufacturing of the Fionet device. As a result, 1,000 devices have been ordered from the manufacturer. Relay’s joint venture, under the manufacturing agreement, has paid for the initial line set ups, as well as 50% of the cost of the first batch of 165 units under the order.
Relay Medical Corp last traded at $0.24 on the CSE.
FULL DISCLOSURE: Relay Medical Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Relay Medical Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.