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Trendlines says launch of MVP company's product on schedule
THE Trendlines Group said on Monday that the product developed by its "Most Valuable Portfolio (MVP) company" is on schedule for launch in 2018.
Trendlines Incubators - Israel, the group's wholly-owned subsidiary, has been paid about US$1.6 million in dividends to-date, upon the MVP company's completion of certain milestones, Trendlines added.
The MVP company had in November 2014 signed an asset purchase agreement with an independent third party for the acquisition of its developed medical device product.
The acquisition price includes a cash payment at closing, milestone payments, and royalties from future sales of the product, as described in the group's audited financial statements for the financial year ended Dec 31, 2016.
The US$1.6 million in dividends is in addition to a cash payment received at the initial closing in November 2014.
Trendlines said that the acquirer is currently in the process of establishing a high-volume manufacturing facility for the production of the MVP company's medical device product.
Once sales of the product begin, the undisclosed acquirer will make royalty payments to the MVP company which, in turn, are expected to be distributed to the MVP company's shareholders, including Trendlines Incubators - Israel.
Todd Dollinger, chairman of Trendlines, said: "The royalty stream which is scheduled to begin in 2018 when sales commence should contribute positively to our cash flow position in the future."
Trendlines is an Israeli medtech incubator listed on Singapore Exchange's Catalist board.