RVR Diagnostics is a privately-held manufacturer and distributor of point-of-care (POC) diagnostic tests for infectious diseases.
As per terms of the deal, Chembio will pay around $1.5m in cash, in addition to nearly $2m worth stock based on the achievement of certain milestones.
The deal also includes the forgiving of $250,000 amount currently owed by RVR to Chembio.
Subject to completion of certain due diligence and other matter, the deal is expected to complete during the first quarter of this year.
In 2014, both firms signed two agreements, under which RVR purchased rights to license, manufacture and supply certain Chembio products, including exclusive distribution rights for Chembio's DPP HIV 1/2 assay and DPP HIV-Syphilis assay in Southeast Asia.
RVR reached multiple milestones based on the agreements, including completion of an advanced manufacturing facility to produce Chembio’s DPP assays.
Funding was also provided to enhance the development of Chembio's DPP dengue assay, which is expected to be commercialized in Southeast Asia during the fourth quarter of this year.
The company also secured regulatory approval to market and sell products in multiple Southeast Asia countries under both RVR and Chembio brands.
Chembio Diagnostics CEO John Sperzel said: , "Our growth plans include expansion into the Asia Pacific region, and we believe a corporate presence in Malaysia, which is centrally located in Southeast Asia, will be a key success factor.
“The RVR team has made excellent progress to establish a high-quality, low-cost manufacturing facility, which recently obtained ISO 13485 certification.”
