EMPYREAN DIAGNOSTICS INC. (SUBSIDIARY OF SOCAL CAPITAL CORP.) ANNOUNCES DETAILS OF AGREEMENT WITH RILLDALE LTD.
VANCOUVER, British Columbia, May 26 /PRNewswire/ -- Empyrean Diagnostics Inc. President and Chief Executive Officer Daniel Bland, announced the details of the license agreement that the company's U.S. subsidiary, Empyrean Diagnostics Inc. (EDI), entered into, as previously announced in a news release dated May 18, 1993. EDI has signed the agreement with Rilldale Ltd. (Rilldale) of London providing for the manufacturing and distribution of EDI's proprietary HIV-1 test-kit in Western Europe and Turkey. Rilldale is a privately owned conglomerate headquartered in London and Milan, Italy. Management believes that Rilldale's broad financial base and extensive product distribution network assures an immediate market penetration for the EDI test-kit throughout Western Europe and Turkey. EDI and Rilldale have agreed to incorporate a new company (Newco) in Switzerland for which Rilldale will be responsible for all costs including incorporation and required working capital funding. EDI and Rilldale are currently preparing the initial budget for Newco, to which Rilldale has committed a minimum of US $2 million. EDI and Rilldale will have equal ownership of Newco and equal representation on the board of directors. The directors and officers of Newco appointed by Rilldale shall provide management expertise and be responsible for the day-to-day operation of Newco. EDI has granted to Newco the exclusive right to manufacture and distribute the EDI test-kit in the license territory for a term of 99 years. Under the license agreement, EDI shall receive revenues from three sources. The first will be a royalty for every kit manufactured by Newco or any sublicensee of Newco. EDI shall also receive a percentage of the gross-sales made by or for Newco in the license territory. All net profits of Newco shall be shared equally by EDI and Rilldale. As stated in the May 18, 1993, news release, Bland is confident that Newco's sales projections of 25-million test-kits, at an estimated retail price of US $1.50 per kit, will be accomplished by the end of 1994. Newco must manufacture and sell certain minimum numbers of the test-kits in order for the license agreement to remain in good standing. Newco is obligated to secure any regulatory approvals required to manufacture and distribute the test kits in the license territory. It is also required to obtain intellectual property protection in each country of the license territory where the kit is to be manufactured and sold. -0- 5/26/93 /CONTACT: Empyrean Diagnostics, 604-687-6223, 800-567-8181, or 800-665-3390/
CO: Empyrean Diagnostics Inc.; Rilldale Ltd.; Newco ST: British Columbia IN: MTC SU: JVN
JB -- LA015 -- 2534 05/26/93 14:36 EDT
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|Date:||May 26, 1993|
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