Vancouver, British Columbia--(Newsfile Corp. - January 18, 2018) - Investment Inventory Regulatory Organization of Canada ("IIROC"), has requested CVR Medical Corp. (TSXV: 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.
For additional information on the organization, leadership and current news, please visit the company website www.CVRMed.com
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.
ON BEHALF OF THE BOARD:
(signed) "Peter Bakema"
CEO, President & Director
For further information please contact:
Peter Bakema, CEO, President and Director
Telephone: (734) 718-5115
Email: info@cvrmed.com
or
Brisco Capital Partners Corp.
Scott Koyich, President
Telephone: (403) 262-9888
This press release contains forward-looking information that involves various risks and uncertainties regarding future events related to the Joint Venture. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements and are not guarantees of future performance of the Company. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with commercialization of technology and the practice of medicine, (3) a change in health regulations, (4) any number of events or causes which may delay or cease commercialization and development of the Joint Venture, (5) the risk that the Company or the Joint Venture does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, and (8) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
THE TSX VENTURE EXCHANGE INC. HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
