GENEVA--(BUSINESS WIRE)--Acrongenomics, Inc. (OTCBB:AGNM - News) are pleased to announce that they have signed an agreement dated August 19, 2008 to restructure the relationship with Molecular Vision Limited, which terminates the May 23, 2007 Development Agreement and has resulted in Acrongenomics holding a substantial equity position in Molecular Vision. The parties have agreed to work jointly, using best endeavours, to sign documents by August 29, 2008 which set out more fully the terms of the agreement.
Molecular Vision is developing low cost, point-of-care diagnostic devices which will greatly extend the in-house tools available to the general medical practitioner. The devices are being developed to allow near patient quantitative diagnosis, currently focusing on key areas of high disease burden, including kidney function and cardiovascular disease.
Under the terms of the agreement, Acrongenomics will own more than 25% of Molecular Vision (on an undiluted basis) and becomes its largest single shareholder, in consideration of its substantial contributions to the development of Molecular Vision’s technology. In addition Acrongenomics will be entitled to appoint a director to the board of Molecular Vision, subject to remaining a substantial shareholder in the company.
In further consideration of the considerable contribution made by Acrongenomics to the development of the technology and in addition to the above, both companies have agreed that Acrongenomics should be receiving a royalty revenue stream for all products that use Molecular Vision’s current intellectual property estate, whether marketed directly by Molecular Vision or indirectly by any major licensee. This will create a stream of revenues for Acrongenomics
Since both companies share the view that it is to their best interest to centralize the commercialization process and keep it under the same umbrella, Acrongenomics’ license to exclusive rights to Molecular Vision’s technologies in certain fields are now terminated, as well as its obligations under the Development Agreement dated May 23, 2007.
Platon Tzouvalis, President of Acrongenomics said, “This is a great day for our company. This agreement with Molecular Vision is a major milestone for Acrongenomics, since it marks our substantial sharing in everything that this technology has to offer. We are proud of the development of the Molecular Vision technology to date and keen on joining forces under the same corporate roof to take it even further. This will allow Acrongenomics and Molecular Vision to focus on the goals of developing the technology and bringing great products to the market, thus increasing our shareholder value and substantially contributing to the betterment of the healthcare system in general.”
About Acrongenomics Inc.
Acrongenomics Inc. is a publicly traded company that focuses on investing in and commercializing novel technology platforms concerning the Life Sciences sector. Acrongenomics brings novel and realistic concepts to market by transforming scientific innovations into tangible, consumer-orientated applications. The company has its headquarters in Geneva, Switzerland.
About Molecular Vision:
Molecular Vision is an Imperial College spin-out company that develops low-cost diagnostic devices for use in the doctor's surgery and in the home. Its proprietary devices combine microfluidic chips with organic-semiconductor light-sources and photodetectors to provide lab-quality diagnostic tests in a miniaturised, easy-to-use, disposable format.
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements. Forward-looking statements in this document include that we will sign more definitive agreements by August 29, 2008; that we will have a revenue stream from the royalty on Molecular Vision products; and that Molecular Vision’s technology allows near patient quantitative diagnosis, and that Molecular Vision will bring great products to market; that we will increase shareholder value and contribute to the healthcare system. A number of factors may affect cause those results to differ materially from those indicated. Such factors include our limited operating history, the possibility that we are not able to agree on final documents, Molecular Vision’s need for significant capital to finance internal growth as well as strategic acquisitions; its ability to attract and retain key employees and strategic partners; its and our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; the possible unacceptability of Molecular Vision’s products by health care authorities and/or practitioners; and other unanticipated future events and conditions. For further information concerning risks and uncertainties that may affect our future results, please review the disclosures contained in our latest filings with the SEC, including our most recent annual report on Form 10-KSB, and subsequent quarterly reports on Form 10-QSB. Other than as required by federal securities laws, we undertake no obligation to publicly update or revise any of our forward-looking statements, whether as a result of changed circumstances, new information, future events, or for any other reason occurring after the date of this news release.
Platon Tzouvalis, President,
Source: Acrongenomics, Inc.