3D Diagnostic Imaging has made further progress in commercialising its tooth decay detection product by signing a new distribution agreement in Canada. The firm has agreed a deal with Patterson Dental/Dentaire Canada, the largest distributor of dental equipment in the country, which covers a market of 16,000 dentists. Patterson will have exclusive distribution rights within the Canadian market for the CarieScan PROtm – a hand held device for the early detection and monitoring of tooth decay. The news follows the recent signing with Patterson Dental for exclusive distribution rights to the product in the US and the announcement that the company has arranged a funding package worth £525,000 to implement the deal.

At a mid-price of 16p 3D Diagnostic Imaging is capitalised at £17.28 million. These deals are testament to the quality of the technology and show that the firm is now making real progress. However, considering that the company is yet to make any sales, we believe the valuation is a bit rich. One to watch only.