Caledon, Ontario, Sept. 03, 2021 (GLOBE NEWSWIRE) — CardioGenics Holdings Inc. (OTC PINK: CGNH) (the “Company”)announced today that its subsidiary, CardioGenics Inc. (“CardioGenics”), has entered into a license agreement with Covidgenics Corp., a private company located in Ontario, which grants to Covidgenics an exclusive 10-year global license of the Company’s proprietary technology for its QL Care Analyzer and paramagnetic beads.
Under the terms of the license agreement, CardioGenics will receive (a) a royalty equal to 40% of “Net Sales” in connection with any products developed and commercialized by Covidgenics under the license (“Licensed Products”), (b) payments equal to 40% of any non-royalty income from Licensed Products, and (c) 22,500,000 ordinary shares of Covidgenics (the “Covidgenicsshares”).
In order to provide the Company’s shareholders an opportunity to participate directly in any increased value that may develop from Covidgenics further development efforts, the Company intends to issue to its shareholders, as a dividend, the Covidgenicsshares received by CardioGenics under the license agreement, subject to compliance with all applicable laws.
CardioGenics Holdings intends to deliver the Covidgenics shares to its shareholders on a pro rata basis according to their holdings as of a record date of September 13, 2021. No fractional shares will be issued. The shares distributed to CardioGenics Holdings’ shareholders will be held, in the shareholder name, at Covidgenics.
About CardioGenics Holdings Inc.
The Company is focused on technology and products targeting the immunoassay segment of the In-Vitro Diagnostic testing market. It has developed the QL Care Analyzer, a proprietary point-of-care immuno-analyzer, which will be capable of running 200+immunoassay diagnostic tests, such as cardiovascular diagnostic tests. As part of its core proprietary technology, the Company has also developed a proprietary method for silver coating paramagnetic microspheres (a fundamental platform component of immunoassay equipment), which improves instrument sensitivity to light.
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