REPEAT - QuestCap Makes Investment in Sinai Health Foundation to Advance Research

Research aimed at building better understanding of the virus and development of alternative diagnostic tests

TORONTO, April 09, 2020 (GLOBE NEWSWIRE) -- QuestCap Inc. (“QuestCap” or the “Company”) (CSE:QSC; FRA:34C1) announced today it is partnering with Sinai Health Foundation to support the development of a diagnostic test for COVID-19.

QuestCap cautions this is still early stage research and development and is not making any express or implied claims that it has the ability to test for the SARS-CoV-2 virus at this time.

Sinai Health Foundation raises and stewards funds to support Sinai Health, Canada’s leading integrated health system. Located at Mount Sinai Hospital in Toronto, the Lunenfeld-Tanenbaum Research Institute, or LTRI, is one of the world’s top biomedical research institutes, powering scientific discovery for almost 35 years.

A team of researchers led by Dr. Anne-Claude Gingras at LTRI has been advancing a COVID-19 serological program. Their aim is to gain a better understanding of SARS-CoV-2 biology and evolution, for the development of an alternative COVID-19 diagnostic test. “We are enthusiastic about partnering with Dr. Gingras and her team at LTRI as they explore ways to find alternative testing solutions for the COVID-19 virus,” said Stan Bharti, Co-Chair, QuestCap Inc. “We are committed to putting our capital to use where we can to aid in the fight against this global pandemic, and this investment illustrates how public and private enterprises can work together in this time of crisis.”

The Agreement
Under the agreement, QuestCap has agreed to provide $500,000 in funding to the program, advancing the effort to develop commercial applications related to the research. In exchange, QuestCap will receive royalties generated by any commercial product developed by Sinai Health Foundation related to their research.

Sinai Health Foundation also grants QuestCap an option to assume the rights, duties and obligations to develop, produce, market and commercialize any commercial intellectual property developed, for a period of two years. In the event the option is exercised by QuestCap, the parties agree that any relevant intellectual property will be transferred, free and clear of any and all encumbrances, to a new company (“Newco”) which will be owned by QuestCap and by Sinai Health Foundation.