The payments will be made in increments of $1 million upon the achievement of various equity financing parameters which may be met by SagaX over a four-year period from closing.
Shimoco is owned and controlled by Dov Shimon, the founder of SagaX, who has resigned from his position on the company’s board of directors as a consequence of the entering into of the share purchase agreement. The closing of the share purchase agreement is subject to numerous conditions.
Mark Landy, president of MIV Therapeutics, said: “This transaction is a win-win for all parties. The sale of SagaX will allow MIV to better focus on its goal of being a leader in the interventional cardiology space, and saves us in excess of $1 million or more annually in development costs, while freeing up SagaX to pursue other financing avenues. SagaX is developing an aortic embolic protection device, a potentially important medical device for which there is great need. This transaction also allows us to participate in potential future product sales via royalty payments.”