- $300,000 received -
Trading Symbol: QPT: TSX Venture Exchange
EDMONTON, May 10 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company") announces that it has received a licensing/equity payment of $300,000 from KMH Co. Ltd. which represents the second payment under the agreement entered into with KMH in October, 2006. As part of this equity investment by KMH, the Company will issue 3,000,000 common shares at $0.10 per share, subject to regulatory approval in Canada and Korea.
Under the October, 2006 agreement, Quest receives a total of $1,500,000 as an equity investment for the licensing fee. The first payment of $200,000 was received in October, 2006 in exchange for a treasury issue of 1,000,000 common shares at $0.20 per share. In addition to equity investment, Quest will also receive royalties on the sale of SL017 for hair removal in Asia. KMH has already initiated a clinical trial for hair removal in Korea with the objective of registering SL017 as a cosmetic product in that country.
The trend towards the use of depilatories has been recognized as one of the basics for self-improvement or self-image management. The worldwide 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 after North America. 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 and is in the process of finalizing a strategic partner for North American market.
Under the amended agreement with KMH, the remainder of the equity investment ($1,000,000) will be made upon reaching specific milestones related to SL017 development in the next few months and at a share price to be determined later but not less than $0.20 per share.
"I am pleased with the Company's progress in taking one of its product to the market and the confidence shown by KMH through continued investment in the Company", commented Dr. Madi R. Madiyalakan, Chief Executive Officer for the Company. In addition to SL017 for dermatological applications, Quest continues to develop SL052 for oncology applications including prostate cancer treatment.
The Company also announces that Dr. Selvaraj Naicker has left Quest upon expiry of his employment agreement as an Officer of the Company on 31st March, 2007. The Company would like to thank Dr. Naicker for his contribution to the Company for the last five years and wishes him well in his future endeavors.
About KMH
KMH 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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