CAMPBELLVILLE, ON, Aug. 14 /CNW/ - NIR Diagnostics Inc.
(TSX Venture: NID), a leading-edge developer of handheld spectroscopy based
medical instruments, today announced that the previously announced strategic
alliance transaction with Shaklee Corporation became effective on August 9,
2006, and that the initial payment of $2,000,000 due under the agreement has
been paid by Shaklee to NIR Diagnostics.
Under the agreement, NIR Diagnostics will utilize its non-invasive
light-based technology to develop a prototype device for use in Shaklee's food
supplement business, for which it will receive an industry standard royalty,
as well as a $1,000,000 milestone payment if delivered within one year. If the
prototype is not delivered within one year, NIR Diagnostics has issued to
Shaklee 13.3 million common share purchase warrants exercisable at a price of
"Shaklee's network of worldwide distributors provides a direct channel to
facilitate commercialization of our technology in the health and wellness
market. We believe that a cost-effective non-invasive blood monitoring device
can encourage healthier dietary or supplement choices," said Duncan J.
MacIntyre, President, CEO and Executive Vice Chairman of NIR Diagnostics. "Our
experience with the HemoNIR(TM) device demonstrates our ability to take a
project from the bench rapidly through to completion and provides us with
confidence in the development timeframe we set out in this agreement with
"We're constantly looking for new, exclusive and innovative ways to
provide an opportunity for our distributors to highlight the superior
effectiveness of our nutritional products," said Roger Barnett, Chairman and
CEO of Shaklee Corporation. "We are delighted to have entered into this
strategic alliance transaction with NIR Diagnostics and benefit from their
extensive patent portfolio and position as a leader in the field of
As part of the strategic alliance, Shaklee is continuing to finalize
certain consulting arrangements with NIR Diagnostics, to ensure that the
development of the device is given a high priority and commercialized as
quickly as possible. Commercial benefits arising from non-invasive medical
devices will be shared equally by NIR Diagnostics and Shaklee. The principal
details of the agreement were previously disclosed on June 20, 2006.
About NIR Diagnostics
NIR Diagnostics is a leader in the development of near-infrared
spectroscopic medical diagnostics. The Company has an extensive portfolio of
optical, electronic and algorithm related patents in the field of in-vitro and
in-vivo blood analysis.
About Shaklee Corporation
For 50 years, Shaklee has been a leading provider of premium quality,
natural nutrition and personal care products, environmentally-friendly
household products, and state-of-the-art air and water treatment systems. The
Shaklee brand is synonymous with high quality and efficacy, representing one
of the most well-established names in the nutritional supplement and direct
selling industries. With a robust product portfolio, including over 48 patents
and patents pending worldwide, Shaklee operates in Canada, Japan, Malaysia,
Mexico and the U.S., and has more than 750,000 members worldwide. For more
information, visit www.shaklee.com.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.