Trading Symbol: QPT: TSX Venture Exchange
- $1,500,000 in equity investment as licensing fee -
EDMONTON, Sept. 27 /CNW/ - Quest PharmaTech Inc. ("Quest" or the
"Company") announces that it has signed a memorandum of understanding (MOU)
with KMH Co., Ltd. of Korea ("KMH") to license the Asian marketing rights to
the Company's cosmetic hair removal product, SL017.
Under the MOU, Quest remains responsible for product development while
H is responsible for product registration, marketing, sales and distribution
in each of the countries covered by the MOU. KMH will also purchase the
depilatory product from Quest and pay a royalty based on the sale of the
product. The MOU also grants KMH the distribution rights to SL017 for acne
treatment in the Republic of Korea.
In accordance with the MOU, Quest will receive $1,500,000 as an equity
investment for the licensing fee. $200,000 of this investment will be by way
of a treasury issue of 1,000,000 common shares at $0.20 per share upon signing
a final licensing agreement by October 15, 2006. The remainder of the
investment will be made in two installments upon reaching specific milestones
related to SL017 development in the next nine months and at a share price to
be determined later. The purchase of the shares requires approval by
regulatory authorities in Canada and Korea.
Quest is also seeking licensing partners for the North American and
European markets.
"I am excited about moving our lead product closer to the marketplace",
commented Dr. Madi R. Madiyalakan, Executive Chairman for the Company. "This
is the first step in our business strategy to commercialize the Company's
SonoLight Technology based products, and I am also pleased that we could
leverage our core technology to finance the Company's core program", added Dr.
Madiyalakan.
Mr. Stanly Kim, CEO and President of KMH commented, "I am extremely
pleased with this strategic business partnership. The agreement fits with our
strategy to increase our revenue by offering consumer products to various
countries in Asia where we already have a market presence".
The trend towards the use of depilatories has been recognized as one of
the basics for self-improvement or self-image management. Globally, the
depilatories market is estimated to be U.S. $2.7 billion. The Asian continent
is believed to be the second largest cosmetics market in the world. The
Company believes that there is substantial opportunity for future market
growth for depilatories. The Company has already demonstrated the utility of
SL017 for cosmetic hair removal applications in a clinical setting.
About KMH
H is a publicly traded (KRX Stock Market: KRX), Korea-based healthcare
company committed to the development, manufacture and commercialization of bio
healthcare products and cosmetics. It is developing a series of products for
the measurement of blood glucose (invasive and non-invasive monitors) for
diabetes monitoring and is also developing a product for the measurement of
obesity. KMH is currently focused on bioinformatics with artificial
intelligence technology and the embodiment of functions related to
U-healthcare through the combination of bloodless glucose monitors and
personal computers or mobile phones.
About Quest PharmaTech Inc.
The Corporation is a publicly traded (TSX Venture Exchange: QPT),
Alberta-based pharmaceutical company committed to the development and
commercialization of new pharmaceutical products. It is developing a series of
products for the treatment of cancer and dermatological conditions based on
its unique photodynamic and sonodynamic therapy platform.
Except for historical information, this press release may contain
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risk and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
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