ChroMedX Accepts Proposal; Signs LOI with Diagnostic Marketing Experts to Conduct a Value-Based Transaction for the HemoPalm Blood Analyzer System
November 24, 2017 ChroMedX Corp. (the Company) (CSE: CHX, OTC: CHXIF, Frankfurt: EIY2), developer of the HemoPalm Handheld Blood Analyzer System, is pleased to announce that it has entered into a binding Letter of Intent (LOI) with Glendale, California headquartered diagnostic marketing specialist Dx Econmix Inc. (DxEx) to conduct a high value transaction for the Company. The Company is now working with DxEconomix to establish a definitive agreement with a view to maximize shareholder value.
ChroMedX retained DxEconomix in August 2017 for an initial assessment period to evaluate the HemoPalm Blood Analyzers product viability, value offering, and market potential in preparation for the commercial product launch of the HemoPalm System. Following the 90-day due diligence process ChroMedX has accepted a proposal from DxEconomix and executed a binding LOI engaging DxEx for the purposes of completing a value-based transaction of the Company.
The DxEx team is very excited to be working closely with ChroMedX on this project said Dr. Richard Janeczko, CEO, DxEconomix Inc. Over the last few months we have been able to take a detailed look at the Company and the HemoPalm platform and we are confident we can deliver a high value transaction within the term of the agreement.
The DxEconomix transaction team is led by CEO Dr. Richard Janeczko and Director Dr. Thomas Schlumpberger. The team has significant hands on experience in the global diagnostics and point-of-care (POCT) blood gas field. DxEx will be responsible for M&A positioning and will lead the Company on business development strategies to optimize ChroMedXs value.
Combining traditional blood gas sensors and co-oximetry in a point-of care platform is a game changer said Dr. Thomas Schlumpberger, Director, DxEconomix Inc.
It addresses a well-recognized unmet need in the management of critical care patients. We believe HemoPalm has the power to transform clinical practices in all areas requiring blood gas analysis.
The LOI stipulates an initial 24 month term during which DxEconomix will lead initiatives to increase the Companys profile, maximize the HemoPalms value proposition and initiate engagement with important strategic industry players.
The LOI outlines terms of a success fee based contract should DxEconomix lead ChroMedX to a successful sales transaction. For transactions up to CAD$250MM the success fee schedule will provide DxEx with 10.5% of the transaction value.
The experience and third-party validation offered by Richard and Thomas is invaluable to ChroMedX at this stage. Richards diagnostics related business development expertise will be critical in optimizing the Companys value proposition as we progress towards commercialization and there is no substitute to the experience that Thomas offers having concluded one of the largest recent transactions in the blood gas field, Aleres US$295MM acquisition of Epocal. We are excited to continue to expand our working relationship with DxEconomix and further align our interests. said Ash Kaushal, President & CEO, ChroMedX Corp.
ChroMedX agrees to pay DxEx a success fee on completion of a business transaction, being a sale of the Company, merger or plan of arrangement involving the disposition of ChroMedX or any similar disposition transaction, all of which are referred to as a Sale Transaction.
ChroMedX and DxEconomix are now working to finalize a definitive agreement within 60 days of the date of the execution of the Letter of Intent. The definitive agreement will contain the covenants and conditions set out herein and additional representations, warranties and terms that are normally included in similar transactions.
Separate to the agreement outlined above Dr. Janeczko, Dr. Schlumpberger and other members of the DxEconomix team are now assisting the Company on a consulting basis in areas of business and corporate development as well as corporate finance and human resources.
link:
https://www.chromedx.com/...posal-signs-loi-with-diagnostic-marketing