TechCare Entered Into Joint Venture Contract With China-Israel Biological Technology Co. Ltd.
NEW YORK, Jan. 29, 2019
NEW YORK, Jan. 29, 2019 /PRNewswire/ -- TechCare Corp. (OTCQB: TECR), a technology company with a revolutionary delivery platform that uses vapor technology for natural health, wellness and beauty treatments, today announced that on January 21, 2019, it entered into a joint venture contract with China-Israel Biological Technology Co. Ltd. ("CIB").
Pursuant to the agreement, TechCare's subsidiary, Novomic Ltd. ("Novomic") and CIB agreed to form a Chinese joint venture company in China ("JV"). The JV will focus on the field of health and cosmetics, including medical care, home care, hair care and body and skin care, in order to develop a comprehensive and broad range of health, wellness, beauty and home products for customers by utilizing TechCare's patented technology of vaporization of natural and plant-based compounds. The JV intends to sell its products in the Greater China region, including mainland China, Hong Kong, Macao and Taiwan, directly or through others.
As part of the joint venture contract, CIB has agreed to invest $1,000,000 in the JV for 60% of its share capital and Novomic has agreed to invest $666,667 in the JV for 40% of its share capital. It was further agreed that Novomic's holdings in the JV shall not be diluted for any investment in the JV at a pre-money valuation of less than $10 million, and that Novomic will maintain at least 20% of the JV's share capital, until an initial public offering, merger or acquisition transaction of the JV.
In addition, TechCare has entered into a subscription agreement with ICB Biotechnology Investments Ltd., an Israeli publicly traded company controlled by CIB, pursuant to which ICB has agreed to invest up to $500,000 in TechCare in two separate tranches of $250,000 each. The first tranche is expected to be invested upon the obtaining of ICB's shareholders approval and the second tranche is expected to be invested upon the formation of the JV and the assignment of certain IP Rights by Novomic to the JV.
"We believe that this is an important milestone for TechCare, as this transaction helps position our entry into the Chinese market and to potentially provide further investment in the future development of our technology products for the health and the cosmetic segments," commented Zvi Yemini, Chairman of TechCare.
About TechCare Corp.
TechCare is a technology company engaged in the design, development and commercialization of an innovative delivery platform utilizing vaporization of various natural, plant-based compounds, to enable a wide variety of treatment solutions. Inspired by simple, natural treatments that have been used for generations. TechCare's renowned scientists combine traditional wisdom with innovative, proprietary technology and years of research to create solutions that answer the needs of today's consumers.
Novokid is a revolutionary anti-lice home use device that eliminates lice, super lice and eggs with a simple 10 minute treatment with no rinsing or washing required. Novokid is 100% natural, plant based, and pesticide free.
Shine, a hair treatment device, developed with internationally renowned industry leaders cleanses the hair and scalp and rejuvenates hair by returning its natural health, shine, body and luster, and is expected to launch later this year.
Additional products are in development and slated for launch in 2019/20.
Notice Regarding Forward-Looking Statements
This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of the Company. This communication contains certain statements that are neither reported financial results nor other historical information and other statements concerning the Company. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, events, products and services and future performance. Forward-looking statements are generally identified by the words "will", "expects", "anticipates", "believes", "intends", "estimates", "target", and similar expressions. These and other information and statements contained in this communication constitute forward-looking statements for purposes of applicable securities laws. For example, the Company is using forward looking statements when it discusses the formation and the focus of the JV, the markets in which the JV intends to sell its products, the investment by CIB and Novomic in the JV, the proposed investments by CIB in the Company and the timing of such investments, the belief that the JV is an important milestone for the Company for the entry into the Chinese market and for the potential future development of its technology products for the health and the cosmetic segments and the timing for the Company's additional product launches in 2019/20. Although management of the Company believes that the expectations reflected in the forward looking statements are reasonable, investors and security holders are cautioned that forward looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by the forward-looking information and statements, and the Company cannot guarantee future results, levels of activity, performance or achievements. Factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this communication include, but are not limited to: trends in target markets; the Company's ability to develop new technology and products; effects of competition in the Company's main markets; challenges to or loss of intellectual property rights; ability to establish and maintain strategic relationships in its major businesses; profitability of the growth strategy; and changes in global, political, economic, business, competitive, market and regulatory forces. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of such forward-looking statements. The forward-looking statements contained in this communication speak only as of the date of this communication and the Company or its representatives are under no duty, and do not undertake, to update any of the forward-looking statements after this date to conform such statements to actual results, to reflect the occurrence of anticipated results or otherwise except as otherwise required by applicable law or regulations.
SOURCE TechCare Corp.