Corgenix Medical Corp, a worldwide developer and marketer of diagnostic test kits, and the ELITech Group, a Paris, France-based, privately held group of companies and worldwide manufacturer and distributor of in-vitro diagnostic equipment and reagents, announced a broad strategic alliance. Terms of the agreement include:
- Strategic Investment – ELITech will initially purchase 8,333,334 shares of Corgenix common shares at $0.15 per share. ELITech is also committing to invest another $750,000 in Corgenix common stock at the same price over the subsequent 12 months upon the successful completion by Corgenix of the two events specified below; warrants also issued at $0.15 could potentially result in an additional $1 million investment.
- International Distribution – ELITech will become the master distributor for Corgenix outside of North America, significantly expanding global market coverage for Corgenix.
- Product Development – Corgenix and ELITech will co-develop new tests by combining Corgenix products and technologies with several of the ELITech proprietary instrument systems.
"We are extremely pleased that the ELITech Group has chosen to establish this relationship with Corgenix," said Douglass Simpson, Corgenix President and Chief Executive Officer. "Investment in our company at a significant premium to the current market price is evidence of ELITech’s very strong belief in Corgenix."
"This new collaboration confirms the vision and perspective of the ELITech Group, which is driven by strategic partnerships with key players in the in-vitro diagnostics (IVD) industry," said Pierre Debiais, the ELITech Group’s President. "The new relationship with Corgenix supports the Group’s commitment to the IVD market, demonstrates our strong desire to develop and introduce new products, and significantly broadens our global position in diagnostics."
"Adding Corgenix and the company’s strength in immunology is a natural expansion to ELITech’s clinical chemistry and serology lines," continued Pierre Debiais. "The partnership furthers ELITech’s existing position in unique microbiology products ranging from specific culture media and rapid tests to multiplexing serology systems and infectious diseases molecular diagnostics."
Further details of the transactions are included in an 8-K filing with the US Securities and Exchange Commission.
Source: Corgenix Medical Corp