News Out
Sonomax to sell 51% of IP to ValueLink Holdings
2012-11-22 08:08 ET - News Release
Mr. Nick Laperle reports
SONOMAX SIGNS EXCLUSIVE STRATEGIC INVESTMENT AGREEMENT FOR THE SALE OF 51% OF ITS INTELLECTUAL PROPERTY
Sonomax Technologies Inc. has entered into a strategic investment agreement with ValueLink Holdings Ltd. of Taiwan for the acquisition by ValueLink of a 51-per-cent ownership interest in Sonomax's intellectual property, including its patent portfolio, and for the issuance to ValueLink of 100 million Sonomax common shares, for total consideration to Sonomax of $10-million (U.S.).
The agreement contemplates a closing on or before Feb. 19, 2013. At the closing of the transaction, Sonomax and ValueLink will enter into a separate licensing agreement under which ValueLink will grant to Sonomax exclusive rights to use the intellectual property, subject to certain minimum performance requirements to be mutually agreed upon by ValueLink and Sonomax. As a partner and co-owner, ValueLink will play a critical role in positioning SonoFit with major original equipment manufacturers (OEM) and original design manufacturers (ODM) to ensure adoption of the technology.
Closing of the transaction is subject to a number of conditions, including completion by ValueLink of a due diligence review of Sonomax's intellectual property to ValueLink's satisfaction and to the signing of a definitive agreement. The transaction is also subject to regulatory approval, including that of the TSX Venture Exchange and, if required by the TSX Venture Exchange or applicable law, by Sonomax's shareholders. No assurances can be given that all of the conditions for closing of the transaction will be satisfied or that closing will occur. ValueLink has the right to assign its rights or to delegate any performance under the agreement to a third party, with the prior consent of Sonomax, acting reasonably.
About ValueLink Holdings
ValueLink Holdings is a Taiwanese-owned strategic intellectual-property aggregator, with a successful record of commercializing and licensing its IP portfolios to leading ODM and OEM companies in Asia and around the globe. ValueLink works under contract with select Fortune 500 companies and iconic brands related to wireless devices, electronics products and accessories. It also facilitates manufacturing and distribution using its vast IP portfolio.
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