Bionik Laboratories Corp. (OTCMKTS:BNKL) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02
On May 18, 2020, Bionik Laboratories Corp. (the “Company”) terminated, effective immediately, its Distribution Agreement dated May 17, 2017 (the “Distribution Agreement”) with China Bionik Medical Rehabilitation Technology Ltd. (the “Distributor”), and the related License Agreement (the “License Agreement”) dated May 17, 2017 with the Distributor. The Distribution Agreement and the License Agreement were originally entered into as part of the Company’s cooperative joint venture in China (the “China JV”) evidenced by that Co-operative Joint Venture Contract dated May 17, 2017, as amended (the “CJV Contract” and, collectively with the Distribution Agreement and the License Agreement, the “JV Agreements”), made between the Company and Ginger Capital Investment Holding, Ltd. (“Ginger Capital”). As a result of the termination of the Distribution Agreement and the License Agreement, the Company further gave notice to Ginger Capital that it was terminating the CJV Contract in accordance with its terms.
The China JV was originally established for the purposes of strengthening the economic cooperation and technical exchange between the parties and adopting advanced technology and scientific management methods through the distribution and promotion of the Company’s products in the People’s Republic of China, Hong Kong and Macau (the “Territory”). In consideration of granting rights to the China JV to market and sell the Company’s products in the Territory, the China JV was originally tasked with the responsibility of obtaining approval from the PRC Food and Drug Administration and such other approvals in order for such marketing and sale in the Territory to be conducted. The China JV was to be co-managed by the parties and each party was represented at the board level by directors appointed by them. The terms of the CJV Contract also provided that any profit distribution will be 75% in favor of Ginger Capital and 25% in favor of the Company.
The Company terminated the JV Agreements as a result of, among other reasons, the China JV failing to meet the milestones and informational requirements set forth in the Distribution Agreement.
About Bionik Laboratories Corp. (OTCMKTS:BNKL)
Bionik Laboratories Corp. (Bionik), formerly Drywave Technologies, Inc., is a medical device and robotics company. The Company is focused on providing rehabilitation solutions and developing transformational technologies and solutions to individuals with neurological disorders, specializing in the designing, developing and commercializing of physical rehabilitation technologies, prosthetics and assisted robotic products. It has over three products on the market and approximately three products in various stages of development. The InMotion Systems include the InMotion ARM, InMotion HAND, InMotion Wrist and InMotion ANKLE are designed to provide patent-adaptive therapy in a manner that has been clinically verified to manage neuro-recovery. The Company is also engaged in developing a lower-body exoskeleton, ARKE, which designs to allow paraplegics, as well as other wheelchair users the ability to rehabilitate through walking.
