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BioNexus to Build AI Applications for Malaysian Healthcare Under Exclusive CogniAI Licence

BGLCRYET
  • BioNexus Gene Lab Corp. (NASDAQ: BGLC) signed a definitive agreement on October 5, 2026, with Ruanyun Edai Technology Inc. (NASDAQ: RYET) for an exclusive Malaysian healthcare license to the CogniAI artificial intelligence platform.
  • BGLC's primary objective is to support Malaysia's public healthcare digitalization program, which covers 150 hospitals and over 2,000 clinics, by converting paper and scanned records into digital formats.
  • The Malaysian government increased its allocation for public healthcare digitalization to RM1 billion in August 2026, with a mandate to equip all public hospitals with electronic medical records by 2029.
  • BGLC has not yet been awarded a government contract; any public sector work will depend on future government procurement outcomes.
  • At closing, BGLC will issue 410,000 common shares for a contractual license consideration of US$3.5 million, with no cash payment involved.
  • BGLC will issue an additional 150,000 common shares in exchange for 500,000 RYET ordinary shares, totaling 560,000 shares in the transaction.
  • The agreement grants BGLC an exclusive ten-year license for healthcare in Malaysia, subject to two five-year renewal options.
  • BGLC retains ownership of applications it develops and may expand the license to other Malaysian industries via written notice, provided a customer contract is signed within twelve months.
  • RYET will receive a 10% royalty on defined technology receipts actually collected, with no minimum royalty or annual platform fee.
  • RYET must deliver the technology by December 4, 2026, for BGLC to conduct acceptance testing before implementation begins.
  • All personal data must be hosted in Malaysia, with RYET prohibited from accessing data from outside the country.
  • Closing is pending satisfactory due diligence, required approvals, technology delivery, and written acceptance, with a termination date of March 31, 2027, if closing has not occurred.
  • This agreement serves as the third element of BGLC's AI strategy, following prior investments in Ascension Innovation Sdn. Bhd. and Fidelion Diagnostics Pte. Ltd.