CARDIOGENICS HOLDINGS INC. ANNOUNCES LICENSE AGREEMENT AND DIVIDEND DISTRIBUTION

Rhea-AI Summary

CardioGenics Holdings (OTC PINK: CGNH) announced a 10-year global licensing agreement with Covidgenics Corp., granting exclusive rights to its QL Care Analyzer technology. CardioGenics will receive a 40% royalty on net sales and an additional 40% of non-royalty income from products developed by Covidgenics, along with 22.5 million shares of Covidgenics. To benefit shareholders, CardioGenics plans to distribute these shares as a dividend, effective September 13, 2021, on a pro rata basis.

Positive

• Exclusive 10-year license agreement with Covidgenics enhances revenue potential.
• 40% royalty and additional income streams from licensed products may increase financial returns.
• Distribution of 22.5 million Covidgenics shares as a dividend directly benefits shareholders.

Negative

• None.

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.

Safe Harbor Forward-Looking Statements:

This press release may contain forward looking statements that are based on current expectations, forecasts, and assumptions that involve risks as well as uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements.

Words such as “estimate,”“project,”“predict,”“will,”“would,”“should,”“could,”“may,”“might,”“anticipate,”“plan,”“intend,”“believe,”“expect,”“aim,”“goal,”“target,”“objective,”“likely” or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of this press release.

For Further Information:
Dr. YahiaGawad – ygawad@cardiogenics.com

FAQ

What is the licensing agreement between CardioGenics and Covidgenics?

CardioGenics has licensed its QL Care Analyzer technology to Covidgenics for 10 years, enabling Covidgenics to develop and commercialize related products.

What are the expected financial benefits for CardioGenics from this agreement?

CardioGenics expects to receive a 40% royalty on net sales and 40% of non-royalty income from Covidgenics, along with 22.5 million shares of Covidgenics.

When will shareholders of CardioGenics receive the dividend?

Shareholders will receive the dividend of Covidgenics shares on September 13, 2021, based on their holdings.

How many Covidgenics shares will be distributed to CardioGenics shareholders?

CardioGenics will distribute a total of 22.5 million shares of Covidgenics to its shareholders on a pro rata basis.

What is the stock ticker for CardioGenics?

The stock ticker for CardioGenics is CGNH.