[USA] Solarvest Bioenergy Inc. (SVS) (“Solarvest” or the “Company”) is pleased to announce that it has signed a non-binding letter of intent (“LOI”) with Sevo Nutraceuticals, Inc. (“Sevo”) for exclusive North American rights to Perceptiv(R), a nutraceutical formulation focused on the growing brain health market (the “License”).
Solarvest will sublicense the rights from Sevo, which holds the worldwide, exclusive license from University of Massachusetts Lowell, who originally developed the product. Solarvest will be the North American partner in conjunction with Sevo’s global marketing plan to grant regional sub-licensees in many international markets.
The LOI proposes that Solarvest will make a payment to Sevo of US$375,000 on closing of the License and will subsequently be responsible for paying a sliding scale royalty calculated on net revenue, subject to certain minimum payments. Solarvest would also be responsible for paying Sevo an additional US$500,000 per year for five years if certain FDA submitted evidence-based claim approvals are obtained. All terms of the agreement are subject to Solarvest’s due diligence and negotiation of a definitive license agreement.
Perceptiv(R) is a patented nutraceutical clinically shown to protect against the normal cognitive decline associated with aging. Sevo completed a print-only test market of Perceptiv(R) in 2016, which produced sales of approximately $2,000,000. It has the distinction of being supported by seven published clinical trials and twenty years of research. Solarvest looks forward to taking Perceptiv(R) into widespread release in North America.
The LOI between the parties is non-binding, pending continued due diligence, board approvals, signing of a definitive license agreement and Solarvest successfully completing a Cdn$2,500,000 equity raise.
View original article at: Solarvest Bioenergy Inc. Signs LOI to acquire revenue producing Nutraceutical Perceptiv