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9342-8530 Quebec Inc DGCRF

Diagnocure Inc is a Canada based biotechnology company. It is primarily engaged in the business activity of development and commercialization of products relating to the diagnosis of cancer. The group generates its revenue from research and license agreement. The head office of the company is located in Quebec, Canada.


GREY:DGCRF - Post by User

Comment by RetailRubeon Sep 13, 2012 3:55pm
117 Views
Post# 20359438

RE: clause of the agreement ?

RE: clause of the agreement ?

Kondero, I don't recall reading that confidentiality clause, but it could be there.

 

What puzzles me is why didn't Signal just send Diagnocure a letter at the end of March exercising clause 9.2.4 in the Licensing Agreement, which says Signal can terminate "for convenience" by giving 90 days written notice.  Signal doesn't need a reason to terminate the royalty agreement.

 

One possibiliity is Signal may not be terminating.  Maybe when the lab consolidation to Maryland (or Arkansas) was announced, the key staff at the Pennsylvania lab didn't want to move their family from Pennsylvania (or couldn't because their mortgage was underwater) and so they found a new job at another company and resigned.  Without trained staff, Signal could no longer (temporarily) perform the GCC test, so they stopped advertising it.  Maybe they also lost the people who knew what to pay to Diagnocure and when.  Plant closures and transitions are always tricky.

 

The other possible explanation is maybe part of the future $5m was due to be paid on June 30.  Maybe 1/5th of it was payable on the first year anniversary of the signing of the agreement ... June 28, 2012.  That could be $1 million if future payments are spread evenly over 5 years.  We don't know how the $5m is handled because that clause is redacted.

 

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