CardioGenics Transfers Magnetic Beads Business Unit Into its Luxspheres Inc. Subsidiary
MISSISSAUGA, Ontario, June 22, 2011 /PRNewswire/ -- CardioGenics Holdings Inc. (CGNH.OB) announced today the transfer of its magnetic beads business unit, which develops ultra sensitive magnetic beads for use in diagnostic devices, into its Canadian subsidiary, Luxspheres Inc. The beads business unit, which was previously operated out of the Company's CardioGenics Inc. Canadian subsidiary ("CardioGenics"), will now be operated exclusively out of Luxspheres, while CardioGenics concentrates on development and marketing of the its QL Care™ Analyzer.
As part of the transaction, CardioGenics' agreement for commercialization of its magnetic beads with Merck Chimie was assigned to Luxspheres, along with CardioGenics' material transfer agreements with two other major international beads distributors. Also as part of the transaction, Luxspheres licensed back to CardioGenics, on a perpetual, worldwide and royalty-free basis, the rights to use Luxspheres' beads technology in connection with CardioGenics' continuing development and marketing of its QL Care™ Analyzer.
The Company also announced that Luxspheres would market its magnetic beads under the name SAVAspheres™ and that Luxspheres has launched its own website, which can be found at www.luxspheres.com.
"In light of the current stage of development of our proprietary magnetic beads, this is an opportune time to have our beads business operate as a separate subsidiary," commented Dr. Yahia Gawad, CEO of CardioGenics Holdings Inc. "Having its own corporate structure and brand identity will assist us in marketing and licensing SAVAspheres™ and its related technologies to beads distributors throughout the world," continued Dr. Gawad.
The Company will also be filing a Current Report on Form 8-K with further details regarding the transaction.
About CardioGenics Holdings Inc.