Chembio Agrees To Buy Malaysia-based RVR Diagnostics - Quick Facts

(RTTNews) - Chembio Diagnostics, Inc. (CEMI), a developer of point-of-care or POC diagnostic tests for infectious diseases, announced Friday that it has entered into an agreement to acquire RVR Diagnostics Sdn Bhd for up to $1.5 million in cash and up to $2 million in Chembio stock.

RVR Diagnostics is a Malaysian, privately-held manufacturer of POC diagnostic tests for infectious diseases.

Chembio noted that the deal price is based on the achievement of certain milestones. Chembio also will forgive $250,000 currently owed by RVR to Chembio.

The transaction, which is subject to completion of certain due diligence and other matters, is expected to close during the first quarter of 2017, at which time RVR will become a wholly-owned subsidiary of Chembio.

In 2014, Chembio and RVR entered into two agreements through which RVR acquired rights to license, manufacture and distribute certain Chembio products, including exclusive distribution rights for Chembio's DPP HIV 1/2 Assay and DPP HIV-Syphilis Assay in Southeast Asia.