Well, in case anybody is listening, turns out to have been a worthwhile two year wait.
CMET on the Canadian Dealers Network is way up!!
see the press release.
FOR IMMEDIATE RELEASE: Canadian Dealing Network: CMET
CME TELEMETRIX LICENSES PROPRIETARY GLUCOSE MONITORING TECHNOLOGY TO MOTOROLA
-Motorola to acquire 6% interest in CME for $2.0 Million USD-
Waterloo, Ontario, February 23, 2000 ? CDN:CMET - CME Telemetrix Inc. (?CME?) today announced it has completed a non-binding letter of intent to form a strategic relationship with Motorola Inc. (NYSE:MOT). Under the terms of the agreement, which is expected to close in March 2000, Motorola has acquired a worldwide, royalty bearing, exclusive license for CME?s non-invasive medical devices for measuring glucose and other diabetes related analyses. CME will retain the right to license the product in Japan only.
Commenting on the monumental significance of this partnership, Duncan J. MacIntyre, President and CEO of CME Telemetrix, stated ?We feel we have selected the perfect corporate partner to assist in the commercialization and miniaturization of CME?s proprietary non-invasive glucose monitor. With a global partner like Motorola, CME has access to strong international marketing and world-class manufacturing, critical for the commercial launch of our non-invasive glucose monitor.?
In exchange for its exclusive license of the CME technology, Motorola will purchase common shares of CME Telemetrix at a purchase price of $7.00 per share so that Motorola?s ownership in CME would be approximately 6%. Motorola will also pay to CME an ongoing royalty of 10% of the net selling price of the commercialized glucose monitoring device. Additionally, Motorola will provide CME with access to Motorola technology useful in furthering the development of the glucose monitoring technology.
The Company plans to have a corporate partner in Japan to license its proprietary glucose monitoring technology. ?In accordance with our stated objective of creating a partnership consortium, we are very confident in our ability to finalize a Japanese partner by the end of calendar 2000. Japan remains a very substantial market for this technology, once commercialized,? concluded MacIntyre.
As a further term of the letter of intent, Motorola has an option to pay CME an additional $1.5 Million USD in the form of a private placement and $4.0 Million USD in prepaid royalties over the next 24 months. In exchange, Motorola?s royalty payments on the net selling price of the commercialized product would fall from 10% to 7%. This option expires on December 1, 2000.
The transactions are subject to the approval of Motorola Executive Management, the approval of the board of directors of CME and the negotiation of definitive documentation. The private placement is also subject to regulatory approval.
CME Telemetrix is a leading edge developer of near infrared instruments. The Company?s prime focus and the basis of its major platform technology is the use of near infrared light for non-invasive blood analysis, particularly for home monitoring by people with diabetes of their blood glucose level. The shares of CME Telemetrix trade under the symbol CMET on the Canadian Dealing Network and there are currently 7.4 million shares outstanding.
For further information please contact:
Jason Hogan
Investor Relations
20 Toronto Street
Toronto, Ontario, L7M 4C1
Tel: 416.815.0700 ext. 222
Fax: 416.815.0080
Email:jhogan@equicomgroup.com
THE CANADIAN DEALING NETWORK HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS NEWS RELEASE.
Copyright ¸ 1999 CMETelemetrix Inc.
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