Chembio Diagnostics, Inc. has completed the previously announced acquisition of RVR Diagnostics Sdn Bhd (RVR), a Malaysian, privately-held manufacturer and distributor of POC diagnostic tests for infectious diseases.
In November 2016, Chembio entered into a definitive agreement to acquire RVR, subject to certain due diligence and other requirements. Under the terms of the agreement, Chembio will pay up to $1.5 million in cash and up to 291,066 shares of Chembio common stock, including $250,000 consisting of both cash and stock that is based on the achievement of certain milestones, and Chembio also will forgive $250,000 currently owed by RVR to Chembio.
John Sperzel, Chembio's CEO, commented, "Chembio is committed to expanding our presence and product offerings in Southeast Asia and around the world. Along with the recent hiring of Robert Passas, Ph.D., to oversee the Company's growth in the EMEA and APAC regions, the acquisition of RVR Diagnostics is a critical component of this strategy. We believe the addition of a high-quality, low-cost manufacturing facility in Southeast Asia, where the population exceeds 600 million, is an important building block in Chembio's global plan. The team in Malaysia will continue to be led by Mac Vajuram, RVR's Managing Director, and Avijit Roy, RVR's Vice President, and we welcome all the RVR employees to the Chembio family."
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