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
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.