Who is he kidding; this is a BAD deal for shareholders. The reason the CSS was developed as the first application is that it is the one with the greatest potential so now Rhodes is trying to divert attention away from this disastrous agreement by focussing on other applications that are years away from commercialisation and that need to be put on a back-burner until the CSS has been fully commercialised.
CVR MEDICAL CORP.: MESSAGE FROM THE CHIEF EXECUTIVE OFFICER
CVR Medical Corp. has shared a message from chief executive officer Michael Rhodes.
After several weeks of negotiation, I am delighted that we have succeeded in agreeing with CVR Global Inc. on an amended restructuring agreement. My previous message outlined our intention to gain total and unencumbered ownership of all intellectual property, giving us the freedom to apply the non-emitting, non-invasive science and solutions behind the carotid stenotic scan (CSS) to applications beyond the carotid artery and opening the way for new stand-alone or integrated products in the future. We have achieved that aim.
We have substantially reduced the upfront cost to the company for acquiring the intellectual property by maintaining royalty payments. Royalty payments were originally introduced with the June, 2018, restructuring agreement for licensing the intellectual property from CVR Global. The new agreement is an acquisition of the intellectual property, eliminating all previous licensing arrangements and removing all future dependance on CVR Global.
With the support of our shareholders, we will create a simpler, more cost-effective business model focused on bringing the best version of the CSS to market with the goal of reducing the incidence of ischemic stroke and exploring future exciting applications of the technology.
Ahead of the next annual general and special meeting of shareholders, I would like to take the opportunity to talk to as many shareholders as possible to explain the details of the restructuring agreement and answer any questions that you may have. Therefore, I encourage you to reach out to me at michaelrhodes@cvrmed.com so that we can set up calls appropriately.