Corgenix Medical, a global developer and marketer of diagnostic test kits and France-based privately held ELITech Group, a worldwide manufacturer and distributor of in-vitro diagnostic equipment and reagents, have entered into a broad strategic alliance.
Under the terms of the agreement ELITech expects to initially purchase 8,333,334 shares of Corgenix common shares at $0.15 per share.
Corgenix and ELITech will co-develop new tests by combining Corgenix products and technologies with several of the ELITech proprietary instrument systems.
ELITech will become the international distributor for Corgenix outside of North America, expanding global market coverage for Corgenix.
ELITech has also committed 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 and warrants also issued at $0.15 could potentially result in an additional $1m investment.
Douglass Simpson, president and CEO of Corgenix, said: “We are extremely pleased that the ELITech Group has chosen to establish this relationship with Corgenix. Investment in our company at a significant premium to the current market price is evidence of ELITech’s very strong belief in Corgenix.”
Pierre Debiais, president of ELITech Group, said: “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. 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. 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.”