Business
Quest PharmaTech and KMH Co. Form Strategic Business Alliance to Distribute Cosmetic Hair Removal Product in Asia.
Quest PharmaTech and KMH Co. Form Strategic Business Alliance to Distribute Cosmetic Hair Removal Product in Asia..
About this update from Quest Pharmatech Inc.
[{"type":"text","content":"\n\n\n\n\nTrading Symbol: QPT: TSX Venture Exchange\n\n- $1,500,000 in equity investment as licensing fee -\n\nEDMONTON, Sept. 27 /CNW/ - Quest PharmaTech Inc. (\"Quest\" or the\n\"Company\") announces that it has signed a memorandum of understanding (MOU)\nwith KMH Co., Ltd. of Korea (\"KMH\") to license the Asian marketing rights to\nthe Company's cosmetic hair removal product, SL017.\nUnder the MOU, Quest remains responsible for product development while\nH is responsible for product registration, marketing, sales and distribution\nin each of the countries covered by the MOU. KMH will also purchase the\ndepilatory product from Quest and pay a royalty based on the sale of the\nproduct. The MOU also grants KMH the distribution rights to SL017 for acne\ntreatment in the Republic of Korea.\nIn accordance with the MOU, Quest will receive $1,500,000 as an equity\ninvestment for the licensing fee. $200,000 of this investment will be by way\nof a treasury issue of 1,000,000 common shares at $0.20 per share upon signing\na final licensing agreement by October 15, 2006. The remainder of the\ninvestment will be made in two installments upon reaching specific milestones\nrelated to SL017 development in the next nine months and at a share price to\nbe determined later. The purchase of the shares requires approval by\nregulatory authorities in Canada and Korea.\nQuest is also seeking licensing partners for the North American and\nEuropean markets.\n\"I am excited about moving our lead product closer to the marketplace\",\ncommented Dr. Madi R. Madiyalakan, Executive Chairman for the Company. \"This\nis the first step in our business strategy to commercialize the Company's\nSonoLight Technology based products, and I am also pleased that we could\nleverage our core technology to finance the Company's core program\", added Dr.\nMadiyalakan.\nMr. Stanly Kim, CEO and President of KMH commented, \"I am extremely\npleased with this strategic business partnership. The agreement fits with our\nstrategy to increase our revenue by offering consumer products to various\ncountries in Asia where we already have a market presence\".\nThe trend towards the use of depilatories has been recognized as one of\nthe basics for self-improvement or self-image management. Globally, the\ndepilatories market is estimated to be U.S. $2.7 billion. The Asian continent\...