VANCOUVER, BC / ACCESSWIRE / January 18, 2018 / Investment Inventory Regulatory Organization of Canada (“IIROC”), has requested CVR Medical Corp. (TSX.V: CVM) (“CVR Medical” or “CVR”) to re-state its press release entitled “CVR Medical Enters China, Executes Preliminary LOI To Launch Its CSS Device In World’s Largest Market” dated January 17, 2018, (the “January 17, 2018 Release”) with increased specificity with regard to the LOI between CVR Medical and Guangzhou LangRun Equity Investment Management Co., Ltd. (“GLR”).
CVR Medical stated in the January 17, 2018 Release that there would be “a significant investment of tens of millions of dollars dedicated to the funding of operational infrastructure, which includes manufacturing, marketing, and sales, CVR is effectively able to work with GLR and bring this project to profitability.” CVR wishes to clarify these terms wherein the LOI states the following:
- GLR will fund and set up an operating JV company solely for the development, marketing and assembly of the CSS in China, GLR or the JV company will undertake all permitting requirements by the Chinese FDA and finance the JV until full market launch of the CSS
- CVR Expects to own up to 35% interest of the JV without cash contribution which may need further negotiation, which will [be] subject to the actual cash or cash equivalent that GLR invested in the JV Company; and
- In consideration, GLR will negotiate a technology transfer fee paid to CVR up to US$20,000,000.00 paid over two years, with certain cash considerations due on signing of a definitive agreement as deposit for future CSS machine deliver or initial payment. Remaining technology transfer fee will be deducted as a percentage of future sales, the total agreed technology transfer fee will be paid out no later than the second anniversary date.
The above terms are subject to the signing of a definitive agreement executed by both parties, and at that time a more comprehensive press release will be issued. CVR can provide no assurances that such definitive agreement will be entered into on the terms provided for in the LOI.
About CVR Medical
CVR Medical is a company that is involved in an equal parts joint venture with CVR Global Inc. (the “Joint Venture”). The Joint Venture operates in the medical industry focused on the commercialization of a proprietary subsonic, infrasonic, and low frequency sound wave analysis technology and has patents to a diagnostic device designed to detect and measure carotid arterial stenosis. CVR Medical is managed by a proven technical team. CVR Medical trades on the TSX Venture Exchange under the symbol CVM.
For further information contact:
Brisco Capital Partners Corp.
Scott Koyich, President
Telephone: (403) 262-9888