Most Valuable Portfolio Company

In November 2014, this Company, referred to in our financial reports as our Most Valuable Portfolio Company (MVP), signed an asset purchase agreement with an independent third party (“the Acquirer”) for the acquisition of the MVP Company’s developed medical device product (“Product”). On 12 June 2017, Trendlines reported that the product developed by its MVP is on schedule for launch in 2018. Trendlines also reported that the Acquirer is currently in the process of establishing a high-volume manufacturing facility for the production of the Product.

The acquisition price included a cash payment at closing, milestone payments, and royalties from future sales of the Product. In addition to the cash payment received at the initial closing in November 2014, Trendlines Incubators – Israel Ltd., Trendlines’ wholly owned subsidiary, has been paid approximately US$1.6 million in dividends, to date, by the MVP.  As Trendlines and the MVP are bound by a confidentiality agreement, additional details of the agreement cannot be disclosed at this time.

Under the terms of the agreement, once sales of the Product begin, the Acquirer will make royalty payments to the MVP which, in turn, are expected to be distributed to the MVP’s shareholders, including Trendlines Incubators – Israel Ltd. Trendlines will provide further updates to the status of the MVP’s Product as it gets closer to market launch and as authorized by the Acquirer.

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