- Investment company, QuestCap Inc (CSE:QSC) is partnering with the Sinai Health Foundation to develop a diagnostic test for the COVID-19 virus
- According to the agreement, QuestCap is proving C$500,000 to Sinai Health in exchange for royalties on any projects that reach the market
- QuestCap also retains the option to develop any resulting IP through a proposed joint venture between the two companies called NewCo
- QuestCap would assume the costs of maintaining and developing the joint venture, with any profits being split between both parties
- QuestCap Inc (QSC) is down 8.11 per cent, with shares trading for $0.68 and a market cap of $25.03 million
Investment company, QuestCap Inc, (CSE:QSC) is partnering with the Sinai Health Foundation to develop a diagnostic test for COVID-19.
According to the agreement, QuestCap is providing C$500,000 to Sinai in exchange for royalties on any projects that reach the market.
Furthermore, through the agreement QuestCap has the option to further develop and produce any intellectual property that results from the investment.
However, if QuestCap exercises this option, a further agreement, setting out new terms, will need to be negotiated. A joint venture would emerge out this new agreement called NewCo, through which both companies could maintain a shared interest.
QuestCap would assume all the costs in developing and maintain the new joint venture and its Sinai’s intellectual properties, with profits being split between both parties.
Even before partnering with QuestCap, researchers at Sinai Health, led by Dr. Anne-Claude Gingras, have been developing the test.
Stan Bharti, Co-Chair, QuestCap Inc, believes this is positive and timely step for the company.
“We are enthusiastic about partnering with Dr. Gingras and her team at LTRI as they explore ways to find alternative testing solutions for the COVID-19 virus.
“We are committed to putting our capital to use where we can to aid in the fight against this global pandemic, and this investment illustrates how public and private enterprises can work together in this time of crisis,” he said.
The company was quick to point out that the COVID-19 test is still in early research and development. Therefore, there is no guarantee that the product currently being developed will be able to successfully test for the virus.
QuestCap Inc (QSC) is down 8.11 per cent, with shares trading for $0.68 at 9:34am EST.