CardioGenics Holdings Inc. announced that CardioGenics Inc. (‘CardioGenics’), has entered into a license agreement with Covidgenics Corp., a private company located in Ontario, which grants to Covidgenics an exclusive 10-year global license of the Company’s proprietary technology for its QL Care Analyzer and paramagnetic beads. Under the terms of the license agreement, CardioGenics will receive (a) a royalty equal to 40% of ‘Net Sales’ in connection with any products developed and commercialized by Covidgenics under the license (‘Licensed Products’), (b) payments equal to 40% of any non-royalty income from Licensed Products, and (c) 22,500,000 ordinary shares of Covidgenics (the ‘Covidgenics shares’). In order to provide the Company’s shareholders an opportunity to participate directly in any increased value that may develop from Covidgenics further development efforts, the Company intends to issue to its shareholders, as a dividend, the Covidgenics shares received by CardioGenics under the license agreement, subject to compliance with all applicable laws. CardioGenics Holdings intends to deliver the Covidgenics shares to its shareholders on a pro rata basis according to their holdings as of a record date of September 13, 2021. No fractional shares will be issued. The shares distributed to CardioGenics Holdings’ shareholders will be held, in the shareholder name, at Covidgenics.