In This Article:
The technology, which will be acquired for US$5 million, allows for the separation of X and Y chromosome-bearing sperm cells
MicroSort offers several advantages for those seeking reproductive assistance and prevention of certain genetic disorders
BANGKOK, Thailand, Jan. 21, 2025 (GLOBE NEWSWIRE) -- NewGenIvf Group Limited (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced that it has entered into a definitive agreement to acquire MicroSort, a proprietary sperm-sorting technology that enhances the Company’s capabilities in providing assisted reproductive services. This strategic acquisition strengthens NewGen’s position in the growing global fertility services market, bolstering the Company’s comprehensive array of options for those seeking reproductive assistance.
MicroSort enables the separation of X and Y chromosome-bearing sperm cells prior to in vitro fertilization (IVF) procedures. This sophisticated process involves fluorescent DNA staining and advanced flow cytometry, allowing for highly precise sperm cell sorting based on chromosomal content. The technology can be applied for couples who are looking to balance their family compositions, as well as those looking to prevent certain genetic diseases, specifically X-linked or X-limited disorders. MicroSort already has established commercial applications and an existing license base in several countries, including Thailand, Japan, Cambodia, and Mexico.
Under the terms of the agreement, NewGen will acquire the technology for US$5 million, to be satisfied through a combination of US$750,000 in cash and the issuance of 2,500,000 ordinary shares (as may be adjusted for any reverse stock split carried out by the Company prior to Completion) at a deemed value of US$1.70 per share. The US$5 million purchase price, which has been approved by NewGen’s board of directors, is supported by an independent third party valuation. This transaction structure, which is expected to boost the Company’s shareholders’ equity by US$4.25 million at the time of Completion, is expected to optimize the Company's capital allocation while adding significant technological capabilities to its service portfolio. Under the terms of the agreement, NewGen will assume the existing licensing agreements associated with MicroSort, which should create an immediate additional revenue stream through license fees from current users.
Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen, commented, “This acquisition represents a significant milestone in our growth strategy and enhances our ability to provide advanced fertility solutions to our clients. Beyond the strategic value of expanding our service offerings, this transaction is structured to strengthen our balance sheet through the issuance of equity at a premium to market price. We believe this enhancement to shareholders' equity may support our ongoing efforts to meet Nasdaq Capital Market continued listing requirements. The integration of this technology into our existing service platform will strengthen our market position in the rapidly growing Asian fertility services market. In addition, MicroSort provides options for families looking to prevent certain genetic disorders, an application which will allow us to expand these services into countries like China and other burgeoning markets in Asia. We are thrilled to be able to offer new options for our customers, and we are optimistic about the impact our acquisition of MicroSort will have on our clients and our company.”