QuestCap Arranges Secured Promissory Note to Finance Purchase of COVID-19 Antibody Testing Kits
TORONTO, April 23, 2020 (GLOBE NEWSWIRE) — QuestCap Inc. (“QuestCap” or the “Company”) (CSE:QSC; FRA:34C1) reports that it has arranged a secured loan in the amount of US$7,700,000 from, and issued a promissory note (the “Note”) to, an arm’s length third party lender (the “Lender”), in order to finance the purchase of 1 million COVID-19 antibody testing kits from South Korean diagnostic testing company PCL Inc., to be distributed in the North and South American markets, and for general corporate purposes. QuestCap submitted an application for approval to Health Canada under the Fast-Track program on April 10, 2020.
The Promissory NoteThe Lender will fund US$7,700,000 to QuestCap immediately.The Note provides for security over all of the assets of QuestCap and is due within 60 days from the date of issuance of the Note (subject to an extension of 30 days at the option of the Lender) or upon an event of default. This will not result in a change of control of the Company.No interest is payable under the terms of the Note. The proceeds from the Note will be used to purchase antibody test kits and for general corporate purposes.As additional consideration for providing the Note, QuestCap has agreed to pay to the Lender a US$1,300,000 origination fee (which forms part of the principal owing under the Note and is to be paid at maturity) and to issue to the Lender 6,000,000 common shares as a loan bonus, subject to any applicable regulatory approvals.An event of default under the Note includes the termination of the Profit-Sharing Agreement and the Supply Agreement (both as defined below)“We’re very pleased to be able to bring these critical tests to the North and South American markets,” said Doug Sommerville, President of QuestCap’s MedQuest Investment Division. “There is significant global demand for COVID-19 testing solutions, and we’re already in conversations with healthcare organizations across the continent to help alleviate the shortage.”“Accuracy of results and ease of use are key in developing a high-quality test, and we’re seeing both of these within our clinical trials,” said Dr. Kim, CEO of PCL Inc. “Partnering with QuestCap will allow us to offer these essential tests to healthcare communities across the Americas rapidly and in the higher volumes that this pandemic has necessitated.”About the COVID-19 Antibody Test Kits
As announced on April 7, 2020, QuestCap has entered into a profit-sharing agreement (the “Profit Sharing Agreement”) with MTJR Inc. (“MTJR”), subject to the satisfaction of conditions with Korean diagnostic testing company PCL Inc., pursuant to a supply agreement between such company and MTJR (the “Supply Agreement”), for MTJR to exclusively distribute, market and sell the COVID-19 Antibody Tests for distribution in North America and also to sell in South America. QuestCap will help finance the purchase of such Antibody Tests, with QuestCap receiving 40 per cent of any profits earned from the sale of the tests. Any purchase of the test kits within Canada is conditional on prior receipt of Health Canada approval.Serology testing for SARS-CoV-2 is in high demand in order to better quantify the number of cases of COVID-19, including those people that may be asymptomatic or have recovered. The PCL COVID-19 IgG/IgM Rapid Gold Antibody Tests provide rapid, point-of-care testing. The test is a ‘fingertip prick’ antibody blood test, providing test results within 10-15 minutes, which has been independently evaluated by three South Korean hospitals. The tests are currently being sold and distributed in the European Union and some Asian countries and are in clinical trials in South Korea.Positive serum samples from Total Ab EIA were used to evaluate COVID19 IgG/IgM Rapid Gold for:COVID-19 Antibody Test Highlights:Point-of-care results from reading test cardTests provided with all necessary components included in boxRapid results in 10-15 minutes from a small (<1mL) user blood sampleIgG Limit of Detection – 1:20,000IgM Limit of Detection – 1:10,000 COVID-19 Antibody Test Disclaimers:This test has not yet been reviewed by Health Canada or the United States Food and Drug Administration.Negative results do not rule out SARS-CoV-2 infection, particularly in those who have been in contact with the virus. Follow-up testing with a molecular diagnostic should be considered to rule out infection in these individuals.Results from antibody testing should not be used as the sole basis to diagnose or exclude SARS-CoV-2 infection or to inform infection status.Positive results may be due to past or present infection with non-SARS-CoV-2 coronavirus strains, such as coronavirus HKU1, NL63, OC43, or 229E.Not for the screening of donated blood.About QuestCap Inc.
QuestCap Inc. (CSE:QSC; FRA:34C1) is a social-impact investment focused company. We seek, secure and fund proven sciences, technologies, and solutions that will have a positive impact on the challenges facing the global community today. We invest in a diverse range of publicly traded and private companies and other entities, providing financing in exchange for pre-determined royalties or distributions, and the acquisition of all or part of one or more businesses, portfolios or other assets. We optimize shareholder value while limiting overall risk.For additional information, please contact:
G Scott Moore, Co-Chair
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+1-925-324-0142Cautionary Note Regarding Forward-looking InformationThis 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 promissory note; and the details and efficacy of the COVID-19 tests. 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”, “will”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties, failure by MTJR to meet conditions of its agreements with QuestCap or the Korean diagnostic testing company, changes in public health emergency policy or other laws and regulations, supply failures, lack of availability of or increases in cost of raw materials or transportation, inability to raise adequate funding, 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. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f183b00f-3f65-4046-9ca6-a86498ece979