China's Shandong Yaohua Medical Instrument Corp. agreed to limit its ownership in Guided Therapeutics Inc. to 4.99%. The companies amended an agreement under which Guided Therapeutics was to issue $1 million of its shares to the Chinese firm.
Guided Therapeutics will now withhold stocks that it would have otherwise issued and issue them later to maintain Shandong Yaohua's ownership at or below 4.99%.
Guided Therapeutics will issue three warrants as consideration for the limitation. Each warrant will be exercisable for 15,000 common shares at $1.25 apiece and will be issued with the next three licensing payments made by Shandong.
The licensing agreement relates to the rights to Guided Therapeutics' LuViva cervical scan in China.