Business
Quest PharmaTech announces second equity investment by KMH Co. Ltd. in connection with Strategic Business Alliance to Distribute Cosmetic Hair Removal Product in Asia
Quest PharmaTech announces second equity investment by KMH Co. Ltd. in connection with 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- $300,000 received -\n\n\nTrading Symbol: QPT: TSX Venture Exchange\n\n\nEDMONTON, May 10 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company")\nannounces that it has received a licensing/equity payment of $300,000 from KMH\nCo. Ltd. which represents the second payment under the agreement entered into\nwith KMH in October, 2006. As part of this equity investment by KMH, the\nCompany will issue 3,000,000 common shares at $0.10 per share, subject to\nregulatory approval in Canada and Korea.\n\n\nUnder the October, 2006 agreement, Quest receives a total of $1,500,000\nas an equity investment for the licensing fee. The first payment of $200,000\nwas received in October, 2006 in exchange for a treasury issue of 1,000,000\ncommon shares at $0.20 per share. In addition to equity investment, Quest will\nalso receive royalties on the sale of SL017 for hair removal in Asia. KMH has\nalready initiated a clinical trial for hair removal in Korea with the\nobjective of registering SL017 as a cosmetic product in that country.\n\n\nThe trend towards the use of depilatories has been recognized as one of\nthe basics for self-improvement or self-image management. The worldwide\ndepilatories market is estimated to be U.S. $2.7 billion. The Asian continent\nis believed to be the second largest cosmetics market in the world after North\nAmerica. The Company believes that there is substantial opportunity for future\nmarket growth for depilatories. The Company has already demonstrated the\nutility of SL017 for cosmetic hair removal applications in a clinical setting\nand is in the process of finalizing a strategic partner for North American\nmarket.\n\n\nUnder the amended agreement with KMH, the remainder of the equity\ninvestment ($1,000,000) will be made upon reaching specific milestones related\nto SL017 development in the next few months and at a share price to be\ndetermined later but not less than $0.20 per share.\n\n\n"I am pleased with the Company's progress in taking one of its product to\nthe market and the confidence shown by KMH through continued investment in the\nCompany", commented Dr. Madi R. Madiyalakan, Chief Executive Officer for the\nCompany. In addition to SL017 for dermatological applications, Quest continues\nto develop SL052 for oncology applications including prostate cancer\ntreatment....