Companies Working Together Successfully to Develop and Optimize Value of Sonomax R&D Pipeline
MONTREAL, March 14, 2013 /CNW Telbec/ - Sonomax Technologies Inc. (TSXV: SHH) is pleased to report that it is making significant progress in adding to its pipeline of intellectual property and that the Company is successfully expanding its relationship with ValueLink Holdings Ltd., to bring its new technologies to market. ValueLink has been working with Sonomax to validate the Company's existing portfolio of intellectual property and during this process, Sonomax has reorganized itself to focus directly on R&D initiatives. As the companies have continued to work together, ValueLink has been able to generate increasing interest in Sonomax IP and R&D across multiple industries. Due to this increased interest and opportunities, Management has decided to broaden its exclusive relationship with ValueLink by forming a joint venture whereby ValueLink takes over the role of exclusive sales and marketing partner, including maximizing the value of the current patent portfolio.
In its expanded role, ValueLink will also work directly with Sonomax Management to identify and validate market opportunities, develop marketing strategies for Sonomax R&D, and negotiate with third parties for the licensing, sale of or investment in Sonomax's future IP development. Sonomax management has reported that ValueLink has already begun introducing Sonomax R&D to industry leading OEMs and ODMs around the globe, as well as to retail markets. The efforts focus on Sonomax's SonoFit™ technology, but move beyond that singular effort to position Sonomax as the premier R&D house focusing on in-ear products and technologies. In addition, the expanded relationship will allow Sonomax to become an aggregator of other relevant in-ear technologies.
In the terms of the new agreement, ValueLink has deferred its retainer and other normal forms of compensation and agreed to base its compensation solely on performance. Furthermore, ValueLink has agreed to structure the partnership so that it will not be dilutive to existing shareholders as previously announced. According to Sonomax CEO Nick Laperle, "Having a partner with the relationships and capabilities of ValueLink has opened new doors and opportunities that position Sonomax at the epicentre of hearing related research. Their success-based fee structure enables us to invest our working capital solely into R&D, where our greatest potential shareholder value resides."
Laperle is also working directly with ValueLink management on a day-to-day basis. "ValueLink has demonstrated the ability to help us package and represent our intellectual property as well as position our Company to benefit from further development," continued Laperle. "We are seeing opportunities we would never have encountered on our own. With our new partnership, we now have a team in the field opening new markets and opportunities while we focus on our core competency, research and product development."
Sonomax has recently rationalized its operations to focus exclusively on supporting OEMs and ODMs and on continued Research & Development. The result has been a reduction in overhead costs of almost $1,000,000 per year. The core team in place along with Sonomax's outsourced engineering, its university partner ETS and their related global university partners will be capable of taking on projects of any size on a variable cost basis.
Over the past several months, ValueLink has engaged in a multitude of conversations and negotiations with world leading suppliers, manufacturers and investors from the US, Europe and Asia on the Company's behalf. Laperle continues, "Value Link has put us in the position to obtain true value building upon the pioneering work that we have done and expanded our marketplace far beyond our expectations for many years to come."
About ValueLink Holdings Limited
ValueLink Holdings Ltd., is a strategic Intellectual Property (IP) aggregator, with a successful track record of commercializing and licensing its IP portfolios to leading ODM and OEM companies in Asia and around the globe. ValueLink works under contract with selective Fortune 500 companies and iconic brands related to wireless devices, electronics products and accessories. It also facilitates manufacturing and distribution using its vast IP portfolio.
Sonomax Technologies develops technologies and leading edge products for all in-ear applications. Its flagship advanced hearing protection product prevents the #1 occupational disease, Noise Induced Hearing Loss (NIHL). The Company offers OEM, ODM and aftermarket clients a broader range of opportunities in customized in-ear solutions using SonoFit for the Consumer, Industrial, Military and Health markets.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Sonomax Technologies Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: SONOMAX TECHNOLOGIES INC.
For further information:
Sonomax Technologies Inc.
Nick Laperle, President & CEO
514-932-2674 ext 2229