Strategic Investment in Avalon Photonics

28th September 2017

Vincent Medical Holdings Limited Vincent Medical ” or together with its subsidiaries, the Group ”, stock code: 1612) and Avalon Photonics Holdings Limited Avalon Photonics ””)), a company founded and majority owned by Avalon Biomedical (Management) Limited are pleased to announce that they have reached an investment agreement (subject to certain condition precedents to be satisfied) to advance the ongoing development and commercialisation of Kanga-CareTM, a wearable phototherapy device for newborn jaundice, a common condition in newborns and presents as a yellowing or yellow-greenish discoloration of the skin and whites of the eyes.

Under the leadership of Dr. Manson Fok, a distinguished medical doctor and biotechnology entrepreneur from Hong Kong, with scientific advisory support from Dr. Johnson Yiu-Nam Lau, a successful pharmaceutical/biotechnology executive, Avalon Photonics is focused on the development of wearable phototherapy devices for neonatal jaundice. Mr. Otto To, CEO and Executive Director of Vincent Medical, will also serve as a director of Avalon Photonics upon completion of the investment agreement.

“This is a pragmatic way to extend our capabilities into phototherapy and expand our existing product line in paediatric medical equipment, one of the fast-growing areas in China following the relaxation of the one child policy.” said Mr. Vincent Choi, Founder, Chairman and Executive Director of the Group.

“According to the National Health and Family Planning Commission of the People’s Republic of China, more than 17.8 million babies were born in the mainland in 2016, 7.9% more than 2015, which was the record total since the year of 2000. We are optimistic that our track record of manufacturing and bringing new medical devices to the Chinese market, coupled together the innovation of the Avalon Photonics, will enable us to capitalise on this important opportunity.”

“By teaming up with Vincent Medical, we will stand to benefit from their manufacturing and marketing and sales expertise in the PRC market and strong customer relationships. Our team is looking forward to collaborating seamlessly with Vincent Medical on the product development and further extend our product offering in phototherapy said Dr. Manson Fok, MBBS, FRCS, Chairman of Avalon Photonics .

Kanga-Care is an innovative phototherapy device under development for intended applications in neonatal jaundice and dermatological diseases , suitable for both home and hospital use. It will consist of a cotton fabric wrapper embedded with light panels that connects to a handy light emitting device. The device will allow cuddling and establishment of breastfeeding without interrupting phototherapy , and also, no eye shield will be needed for infant s or parents. Kanga-Care, classified as a CLASS II device, is now undergoing China Food and Drug Administration ( CFDA regulatory approval
process .