Dragon Jade Signs Exclusive Option to Acquire Ultroid System for Treatment of Hemorrhoid Disease
HONG KONG, CHINA / ACCESSWIRE / February 2, 2017 / Dragon Jade International Limited (DGJI) today announced that it has signed an exclusive option and remediation agreement (EORA) with Ultroid Technologies, Inc. and affiliates to acquire all assets, equipment, and intellectual property of the Ultroid System for treatment of hemorrhoid disease.
In the first stage of the agreement, which commenced on January 23, Dragon Jade engaged an electronics service provider to conduct a remediation program designed to investigate and update the Ultroid System's product and design files. The next stage, to begin shortly, will include the implementation of a new Quality Management System (QMS) to monitor manufacturing and internal record keeping for the Ultroid System (Violations cited by the FDA against the Ultroid company in August 2015 largely centered around an inadequate QMS).
Should the electronics service provider be successful in its first two stages of the remediation program - and meet related milestones detailed in the EORA - Dragon Jade would agree to both cancel its arbitration proceedings initiated against Ultroid on January 3 and remit to that company within 90 days payment of US$1 million in cash and 500,000 restricted common DGJI shares in return for ownership of the Ultroid assets.
Dragon Jade would then instruct the service provider to enter the production phase of the remediation process with an initial order of 100 units of the Ultroid System and 7500 of the probes used with the System, all of which would be produced and delivered to DGJI by late May or June, assuming related timelines are met.
Upon conclusion of the production phase of the remediation process, Dragon Jade will be in compliance with manufacturing and record-keeping standards required by the existing 510(K) FDA clearance of the Ultroid System, and will thus have the right to manufacture it in the U.S. and to market it worldwide.
All expenses associated with the remediation process, as well as other expenses related to the process, are secured by a lien on the assets of the Ultroid company.
"We are very excited to sign this agreement," said Dragon Jade chief executive Dr. Steve Lai. "We believe Ultroid currently has a worldwide market potential in the tens of millions of dollars, and that this market could grow significantly upon the product meeting FDA standards."
For additional information on this news, please see Dragon Jade's recent 6-K filing at
https://www.sec.gov/Archives/edgar/data/1456787/000112785517000014/dragonjadeexh10_1.htm
About Dragon Jade
Dragon Jade International Limited and its subsidiaries ("the Group") are focused on identifying, developing, and marketing the next generation of herbal and natural products that improve people's lives. The Group is positioned to leverage proven resources that allow us to assess, enhance, and realize the commercial potential of herbal and biotechnological discoveries. The Group strives to develop and offer to the market the broadest selection of cost-effective healthy living products, which shall deliver substantial returns to investors. For more information on Dragon Jade, visit the Company's website: www.dgjigroup.com.
Safe Harbor Statement
This release includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as the Company "believes," "expects," "anticipates," "foresees," "estimates," or other words or phrases of similar import. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions, or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
Contacts:
William Fung
Dragon Jade International
williamfung@dgjigroup.com
(852) 3588-1780
Rick Eisenberg
Asia IR-PR
Rick@asia-irpr.com
(212) 496-6828
SOURCE: Dragon Jade International Limited
