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TORONTO, June 17, 2020 (GLOBE NEWSWIRE) — Social-impact investment company QuestCap Inc. (CSE:QSC; FRA:34C1) is pleased to provide a corporate update and provide developments from investment partners.QuestCap’s recent investments and partnerships include:Sunnybrook Hospital’s Research Group for Emerging and Respiratory Viruses, founding investment has allowed Sunnybrook to accelerate their work on potential vaccines and treatments for COVID-19Mount Sinai Hospital, QuestCap has funded research in to an automated, high-throughput serosurveillance platformMTJR, profit-sharing agreement with distributor MTJR, who has entered into an agreement to secure the exclusive right to distribute and market PCL’s COVID19 Rapid IgG/IgM Gold Tests in the United States and Canada with selling rights in Mexico and South America“We’ve been very focused on putting our capital to work in projects that show promise in mitigating the spread of the virus while indicating an opportunity to deliver strong financial results,” said Doug Sommerville, CEO of QuestCap. “We’ve leveraged the specialized knowledge of our Global Advisory Team to help identify, connect with, and guide our investments into these high-potential projects as well as new opportunities post COVID19. We’re very pleased with the progress we are seeing.”Disclaimer
The Company is not making any express or implied claims that this research or products have the ability to eliminate, cure or contain the Covid-19 (or SARS-2 Coronavirus) at this time.$1 million to be invested in tranches into Sunnybrook Hospital’s Research Group for Emerging and Respiratory Viruses (SERV). On April 2, 2020, QuestCap announced the founding investment for the Sunnybrook Translational Research Group for Emerging and Respiratory Viruses (“SERV”). Pursuant to the Research Investment and Royalty Agreement dated March 31, 2020 between QuestCap and Sunnybrook Research Institute (“Sunnybrook”): (a) QuestCap is to provide Sunnybrook with an aggregate research investment of $1 million, payable in four $250,000 instalments on or before the following dates: (i) April 30, 2020 (which instalment has been paid), (ii) June 30, 2020, (iii) September 30, 2020, and (iv) December 31, 2020; and (b) in return, Sunnybrook has granted, and is to pay QuestCap on a calendar quarter basis, a perpetual, freely transferable royalty equal to 3.5 per cent of any net proceeds of royalties, licensing revenues and other income received by Sunnybrook from the commercialization of its rights to intellectual property arising directly from research on the isolation of severe acute respiratory syndrome coronavirus 2 (“SARS-CoV-2” or the “Virus”) (the agent responsible for the ongoing outbreak of COVID-19) conducted by Sunnybrook using the Investment.
Sunnybrook’s Translational Research Group for Emerging and Respiratory Viruses has advised QuestCap of the following:
It has made progress in the following three areas of research: virus transmission, medical countermeasures including potential antivirals and vaccines, and virus genomics.
The SERV team has launched a simulation study to better understand how SARS‐CoV‐2, the virus that causes COVID‐19, spreads in the environment. The results were submitted for publication on June 16th, and will help hospitals care for COVID‐19 patients while protecting their healthcare workers. Sunnybrook’s bioaerosol research has attracted international attention and the data has been reported to the World Health Organization. The research team has been approached by ORNGE air ambulance and the Bank of Canada for insight into virus transmission.
QuestCap’s investment has provided critical funding to expand and accelerate Sunnybrook’s work to develop vaccines and treatments. Over the last two months, the team has ramped up research in the Level 3 containment lab at University of Toronto.
Sunnybrook’s early work in genomics will be supported by the QuestCap investment. SERV’s work to sequence the Virus has brought Sunnybrook’s genomics research into the international spotlight. The Virus generated at Sunnybrook is the main virus used in most academic containment level 3 labs in the country including: McMaster, Western University, McGill, UBC, and Calgary.$0.5M to be invested in tranches into Sinai Health System’s research in COVID-19 surveillance testing. QuestCap announced on April 9, 2020 that the Company is partnering with Sinai Health System (“Sinai”) through their Foundation to support research into COVID-19. The aim of the research is to gain a better understanding of the prevalence of SARS-CoV-2 infection and patients’ immune response through the development of a COVID-19 serosurveillance test. Pursuant to the terms of the Investment and Royalty Agreement dated April 8, 2020 between Sinai and QuestCap: (a) QuestCap is to provide Sinai, through the Sinal Health Foundation, with an aggregate research investment of $500,000, payable in four $125,000 instalments on or before the following dates: (i) April 22, 2020 (which instalment has been paid), (ii) July 8, 2020, (iii) October 8, 2020, and (iv) January 8, 2021; and (b) in return, Sinai has granted, and is to pay QuestCap on a calendar quarter basis, a perpetual, freely transferable royalty equal to 5 per cent royalty on any gross sales or revenue earned and received by Sinai, directly or indirectly, from the commercialization of its rights to intellectual property arising from the proprietary diagnostic test(s) developed by Sinai using the funding provided by QuestCap.
Sinai has advised QuestCap of the following:
The research team at the Lunenfeld-Tanenbaum Research Institute (LTRI) – Mt. Sinai Hospital is exploring the potential of a robotized platform that may be able to monitor the immune response to a COVID-19 infection and assess:Which individuals have been previously exposed to the virusWhat type and quantity of antibodies have been produced in those individualsHow long will any potential immunity persists
LTRI’s platform is a simple “ELISA” (enzyme linked immunosorbent assay) that immobilizes SARS-CoV-2 proteins and fragments of these proteins as antigens. They have tested several antigens and have optimized three assays based on 1) Spike full-length trimer 2) Spike receptor binding domain (RBD) and 3) Nucleocapsid protein. LTRI has optimized detection of IgG, IgA and IgM antibodies to these antigens using a colorimetric format as well as a chemiluminescent format for a high-throughput platform.Profit Sharing Agreement for distribution of COVID-19 antibody testing kits in the Americas. On April 7, 2020, QuestCap announced that it had entered into a profit-sharing agreement (the “Profit Sharing Agreement”) with MTJR, Inc. (formerly More Than Just Rice Inc.) (“MTJR”) and its shareholders, Le Phuoc Thang Nguyen and Reeve Benaron. MTJR, has entered into a supply agreement (the “Supply Agreement”) with PCL, Inc. (“PCL”), a South Korean company, to secure the exclusive right to distribute and market PCL’s various technologies, tests and kits (the “Product”), including specifically PCL’s proprietary COVID-19 IgG/IgM Rapid Gold Tests (the “Tests”), in the United States and Canada with selling rights in Mexico and South America. Under the Profit Sharing Agreement, MTJR and QuestCap have agreed that they would share the net profits of MTJR in connection with, or in any way related to MTJR’s relationship with PCL and/or sales of the Product, on a 50% MTJR/40% QuestCap basis (the “QuestCap Profit Right”), with the remaining 10% to be shared with third parties pursuant to a separate profit sharing agreement. As consideration for the QuestCap Profit Right, QuestCap was obliged to issue 10 million common shares, a total of 5 million common shares of which are to be issued to the two shareholders of MTJR (subject to milestones based on sales of the Tests) and the remaining 5 million common shares of to be issued to Greenway Investments (subject to satisfaction by MTJR of all conditions under the Supply Agreement). Under the terms of the Profit Sharing Agreement, QuestCap was obliged to use its best efforts to work with MTJR to deliver, or cause to be delivered: (i) up to US$250,000 to MTJR (the “Reimbursement Amount”) in reimbursement for actual costs in connection with the Product and the implementation of the Supply Agreement and (ii) US$10 million to MTJR for the purchase of the Tests from PCL (the “Initial Cash”), which amount is to be reduced by deposits received by MJTR from third party purchasers of the Tests. On April 23, 2020, QuestCap announced that it had arranged a secured loan in the amount of US$7.7 million to enable it to fund a portion of the Initial Cash payment. QuestCap was also provided with the right to nominate 2 of 5 directors of MTJR. MJTR is obliged, prior to making any payments from the gross proceeds received from the sale of Product or any business with PCL, to apply all or any portion of such proceeds to repay any and all funds advanced to MTJR by QuestCap (including any costs of capital incurred by QuestCap), excluding the Reimbursement Amount, pursuant to the Profit Sharing Agreement.
PCL’s COVID19 Rapid IgG/IgM Gold Tests are high-quality antibody blood tests that provide results within 10-15 minutes. The tests have been marketed and distributed in the United States to High Complexity CLIA Laboratories pursuant to the U.S. FDA’s policy on COVID-19 serological tests during the public health emergency period.
In addition, MTJR has current purchase agreements which are conditional on US Food and Drug Administration Emergency Use Authorization (EUA). An application for EUA has been submitted to the US FDA and PCL is corresponding with an assigned reviewer. The timeline for receiving a final response is still unknown. MTJR is also working to satisfy the final conditions under the supply agreement with PCL in order to secure exclusive selling rights in Canada and the United States.
A&H’s COVID-19 Standard for Safe Sport™ On April 21, 2020, QuestCap acquired 49% of the common shares of Athletics and Health Solutions Inc. (“A&H”), which had entered into a non-binding letter of intent with Division Mayor del Futbol Colombiano (“DIMAYOR”), the organization responsible for operating professional football leagues and tournaments in Colombia, to restart football activities in Colombia. Subsequently, due to the deteriorating public health situation in Colombia, the anticipated start of training and matches has been delayed. Despite a strict public lockdown, COVID-19 cases have been increasing through the month of June. A&H advised QuestCap that the Letter of Intent entered into between A&H and DIMAYOR has lapsed, and that when the situation improves, A&H will participate in a general tender to provide a sanitary protocol to resume soccer. This proposal would include logistics, medical operations, the supply of disinfectants, and COVID-19 testing.Notice to ShareholdersQuestCap has been made aware that unauthorized marketing and buy recommendations containing incorrect or unfounded statements about the company, including forward-looking statements, have been disseminated by third parties, including in Germany. QuestCap advises all investors and potential investors to properly verify the information provided by any individual and/or third parties regarding buy recommendations or facts concerning the company and, if such statements cannot be verified, to otherwise give no value to such unauthorized marketing. Investors can visit QuestCap’s website for up-to-date information pertaining to the company and its social-impact investments.About QuestCap Inc.
QuestCap Inc. (CSE:QSC; FRA:34C1) is a social-impact investment company. Through QuestCap’s three divisions, MedQuest, TechQuest and ClimateQuest, it seeks, secures and funds recognised sciences, technologies, and solutions that impact our global community today.The QuestCap executive team is complemented by a panel of global advisors that provide expertise across industries and geographies. This panel includes prominent immunologist Dr. Lawrence Steinman, and Dr. Glenn Copeland, team physician to the CFL’s Ottawa Redbacks and MLB’s Toronto Blue Jays and consultant to MLB’s Atlanta Braves.QuestCap provides financing for a diverse range of entities in exchange for pre-determined royalties or distributions, or acquires all or part of one or more businesses, portfolios or other assets. QuestCap strives to maximize shareholder value while limiting downside risk.For additional information, please contact:
Doug Sommerville, CEO
[email protected]For Canadian media enquires please contact:
Evan Veryard
[email protected]For US media enquires please contact:
Veronica Welch
[email protected]
+1-508-643-8000Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the progress or updates on any of the investments made by QuestCap; the merits of any investments made by QuestCap; the pursuit by QuestCap of investment opportunities; and the merits or potential returns of any such investments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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