CHEMBIO DIAGNOSTICS, INC. (NASDAQ:CEMI) Files An 8-K Entry into a Material Definitive Agreement

CHEMBIO DIAGNOSTICS, INC. (NASDAQ:CEMI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01

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Entry into a Material Definitive Agreement.

On February 5, 2019, we, through our wholly owned subsidiary Chembio Diagnostic Systems Inc., entered into a commercial real estate lease with Myra Properties, LLC for new corporate headquarters comprised of 70,000 square feet of office, research and development, and warehouse space located at 555 Wireless Boulevard, Hauppauge, New York. The lease has an initial term of eleven years that can be extended, at our option, for two additional terms of five years each. Rent under the lease, which is payable in monthly installments, totals approximately $900,000 for the initial year and then increases by approximately three percent each succeeding year. The lease contains customary representations, warranties, covenants and termination provisions.

On February 5, 2019, we, through Chembio Diagnostic Systems Inc., also entered into an agreement of sublease with Reliance Communications of New Jersey, LLC, an affiliate of Myra Properties, LLC, to sublet space located at 91-1A Colin Drive, Holbrook, New York that currently provides us with warehouse space and supplemental administrative offices. We lease these premises from Sherwood Corporate Center, LLC to a commercial real estate lease dated February 4, 2013 that, as modified by an extension letter dated September 19, 2017, will terminate on April 30, 2020. The sublease has a term that will (a) commence on the later of March 18, 2019 and the date we vacate the premises and (b) terminate on April 29, 2020. Reliance Communications, Inc. will pay us 50% of our rent and additional rent payments, which will total approximately $100,000 per year during the term of the sublease.

The foregoing descriptions do not purport to be complete and are subject to, and qualified in their entirety by, the full text of the lease and sublease, which are included as Exhibits 10.1 and 10.2, respectively, to this report and are incorporated herein by reference.

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The description set forth in the first paragraph of Item 1.01 of this report, and the full text of the lease included as Exhibit 10.1 to this report, are incorporated herein by reference.

Item 5.02

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 7, 2019, Sharon Klugewicz notified us of her intention to resign as our Senior Vice President and Chief Quality and Regulatory Officer effective as of February 22, 2019.

Item 9.01.

Financial Statements and Exhibits.

Exhibit No.

Description

Lease Agreement dated February 5, 2019 between Myra Properties, LLC, as lessor, and Chembio Diagnostic Systems Inc., as lessee

Agreement of Sublease dated February 5, 2019 between Chembio Diagnostic Systems Inc., as sublessor, and Reliance Communications of New Jersey, LLC, as sublessee

CHEMBIO DIAGNOSTICS, INC. Exhibit
EX-10.1 2 ex10_1.htm EXHIBIT 10.1 Exhibit 10.1 LEASE 555 Wireless Boulevard,…
To view the full exhibit click here

About CHEMBIO DIAGNOSTICS, INC. (NASDAQ:CEMI)

Chembio Diagnostics, Inc. (Chembio), and its subsidiary, Chembio Diagnostic Systems, Inc., develop, manufacture, market and license rapid point-of-care diagnostic tests (POCTs) that detect infectious diseases. The Company’s products available are rapid tests for the detection of human immunodeficiency virus (HIV) 1/2 antibodies, and a multiplex rapid test for the detection of HIV and Syphilis antibodies. The HIV 1/2 rapid tests employ in-licensed and lateral flow technologies that are used with all blood matrices as samples, and are manufactured in a standard cassette format, a dipstick format and a barrel format. Its HIV 1/2 rapid antibody detection test incorporates the Dual Path Platform (DPP) POCT technology. The DPP HIV 1/2 Assay detects antibodies to HIV 1 and 2 in oral fluid samples, as well as in all blood matrices. The Company’s product pipeline includes a multiplex rapid test for earlier detection of HIV and a multiplex test that detects HIV and Syphilis specific antibodies.

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