Izotropic Signs Letter Agreement for Regional Operations in Africa & the GCC

Executive Summary

• Izotropic Corporation entered a Letter Agreement with a business group to create “Izotropic Africa,” an entity based in Casablanca, Morocco, targeting the African and GCC markets for its IzoView Breast CT system.
• The joint venture will be owned 60% by the business group and 40% by Izotropic (subject to final legal structuring), with an estimated first‑year start‑up budget of USD $120 k for Izotropic’s share; Izotropic will advance USD $30 k initially.
• The parties aim to secure a major Moroccan hospital site in Q1 2026 for installation, clinical data collection, and regulatory approval, and will explore local manufacturing/assembly opportunities.

Key Details

• Agreement Scope: Establishment of Izotropic Africa to license, market, distribute, and evaluate manufacturing/assembly of IzoView Breast CT and follow‑on products across Africa and the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE).
• Ownership Structure: Business Group – 60% fully diluted; Izotropic – 40% fully diluted (subject to final corporate, tax, regulatory, repatriation structuring).
• Formal Agreement Deadline: Parties will negotiate and execute a Formal Agreement by April 30 2026; the Letter Agreement terminates upon execution or failure to do so.
• First‑Year Budget: Estimated total start‑up cost for Izotropic’s 40% share = USD $120,000.
• Initial Capital Advance: Izotropic will advance 25% (USD $30,000) of its share for the first three months, contingent on execution of the Formal Agreement and financing.
• Operational Commitments by Business Group:
• Develop annual business plan for sales, marketing, distribution of IzoView in Africa/GCC.
• Secure a major Moroccan hospital site in Q1 2026 for installation of an IzoView Breast CT system to serve as research/clinical study and regulatory hub.
• Initiate approval processes with health ministries in target territories.
• Assess feasibility of local manufacturing or assembly in Morocco for regional supply.
• Izotropic’s Support Commitments: Provide technical, clinical, operational assistance; build, ship, install the first IzoView system in partnership with the designated hospital (subject to Formal Agreement and financing).
• Market Opportunity: Breast cancer is the leading cancer among African women (~200,000 cases annually) with >50% mortality due to delayed diagnosis. Projected addressable market for advanced imaging/oncology devices in Africa exceeds USD $500 million by 2030.

Notable Quotes

• “The establishment of Izotropic Africa is intended to expand the Company's commercial footprint into regions where access to advanced breast imaging remains limited, positioning Morocco as a strategic gateway for deployment, regulatory engagement, and potential future regional manufacturing initiatives.” – Robert Thast, Interim Chief Executive Officer, Izotropic Corporation.