IVD Medical Holding (HKG:1931) has entered into a non-legally binding memorandum of understanding (MOU) with Believe In AI Technology to explore investing in a private company focused on artificial intelligence high-density arithmetic liquid-cooling solutions, according to its filing on Monday.

For six months, the vendor will exclusively negotiate with IVD Medical, assisting in due diligence for the potential acquisition of shares in the target company.

A deposit of HK$10 million will be made by IVD Medical, which is refundable if no formal agreement is reached or due diligence is unsatisfactory by March 31, 2025.

The target company's technology is expected to synergize with IVD Medical's operations, enhancing medical equipment performance and energy efficiency. The MOU includes clauses on exclusivity and confidentiality but requires a formal agreement for the investment to proceed.