Chembio Completes Acquisition of Malaysia-based RVR Diagnostics
January 10 2017 - 08:50AM
Chembio Diagnostics, Inc. (Nasdaq:CEMI), a leader in point-of-care
(POC) diagnostic tests for infectious diseases, today announced
that the Company has completed the previously announced acquisition
of RVR Diagnostics Sdn Bhd (RVR), a Malaysian, privately-held
manufacturer and distributor of POC diagnostic tests for infectious
diseases.
In November 2016, Chembio entered into a
definitive agreement to acquire RVR, subject to certain due
diligence and other requirements. Under the terms of the agreement,
Chembio will pay up to $1.5 million in cash and up to 291,066
shares of Chembio common stock, including $250,000 consisting of
both cash and stock that is based on the achievement of certain
milestones, and Chembio also will forgive $250,000 currently owed
by RVR to Chembio.
John Sperzel, Chembio's CEO, commented, “Chembio
is committed to expanding our presence and product offerings in
Southeast Asia and around the world. Along with the recent
hiring of Robert Passas, Ph.D., to oversee the Company’s growth in
the EMEA and APAC regions, the acquisition of RVR Diagnostics is a
critical component of this strategy. We believe the addition of a
high-quality, low-cost manufacturing facility in Southeast Asia,
where the population exceeds 600 million, is an important building
block in Chembio’s global plan. The team in Malaysia will continue
to be led by Mac Vajuram, RVR’s Managing Director, and Avijit Roy,
RVR’s Vice President, and we welcome all the RVR employees to the
Chembio family.”
About Chembio Diagnostics
Chembio Diagnostics, Inc. develops,
manufactures, licenses and markets proprietary rapid diagnostic
tests in the growing $8.0 billion point-of-care testing
market. Chembio markets each of its DPP® HIV 1/2 Assay, HIV
1/2 STAT-PAK® Assay, and SURE CHECK® HIV 1/2 Assay, with these
Chembio brand names, in the U.S. and internationally both directly
and through third-party distributors. The Company's SURE
CHECK® HIV 1/2 Assay previously has been exclusively sold in the
U.S. as Clearview® Complete HIV 1/2 Assay.
Chembio has developed a patented point-of-care
(POC) test platform technology, the Dual Path Platform (DPP®)
technology, which has significant advantages over lateral-flow
technologies. This technology is providing Chembio with a
significant pipeline of business opportunities for the development
and manufacture of new products.
Headquartered in Medford, NY, Chembio is
licensed by the U.S. Food and Drug Administration (FDA) as well as
the U.S. Department of Agriculture (USDA), and is certified for the
global market under the International Standards Organization (ISO)
directive 13485. Chembio Diagnostic Systems Inc. is a wholly-owned
subsidiary of Chembio Diagnostics, Inc. For more information,
please visit: www.chembio.com.
Forward-Looking Statements
Statements contained herein that are not
historical facts may be forward-looking statements within the
meaning of the Securities Act of 1933, as amended. Forward-looking
statements include statements regarding the intent, belief or
current expectations of the Company and its management. Such
statements, which are estimates only, reflect management's current
views, are based on certain assumptions, and involve risks and
uncertainties. Actual results, events, or performance may differ
materially from the above forward-looking statements due to a
number of important factors, and will be dependent upon a variety
of factors, including, but not limited to Chembio's ability to
obtain additional financing and to obtain regulatory approvals in a
timely manner, as well as the demand for Chembio's products.
Chembio undertakes no obligation to publicly update these
forward-looking statements to reflect events or circumstances that
occur after the date hereof or to reflect any change in Chembio's
expectations with regard to these forward-looking statements or the
occurrence of unanticipated events. Factors that may impact
Chembio's success are more fully disclosed in Chembio's most recent
public filings with the U.S. Securities and Exchange
Commission.
Contacts:
Chembio Diagnostics
Susan Norcott
(631) 924-1135, ext. 125
snorcott@chembio.com
Vida Strategic Partners (investor relations)
Stephanie C. Diaz
(415) 675-7401
sdiaz@vidasp.com
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