In a regulatory filing, SCWorx (NASDAQ:WORX)
discloses that virtual healthcare network Rethink My Healthcare has
canceled its purchase order for up to 52M COVID-19 rapid antibody tests announced on April 13.
The company says the reason for the cancelation was the inability of test supplier Brisbane, Australia-based ProMedical Equipment Pty Ltd.
to fulfill its obligations to secure FDA approval to permit
commercialization. SCWorx subsequently canceled its order with
ProMedical.
On April 29, it entered into another supply agreement with Feltwell Holding SA,
a wholesale trading company in the energy business, under which it
agreed to purchase and Feltwell agreed to supply 500K COVID-19 rapid
antibody tests, 100K to be shipped no later than May 4 and 400K within
15 days of order placement, expected to be no later than May 4. SCWorx
agreed to pay 50% of the total order cost at the time of order placement
and the remaining 50% upon completion of production (product ready for
shipment). The first half has been paid by a third party under the
condition that the third party will receive 25% of SCWorks’ gross profit
on the first 100K units (and after it receives payment). The remaining
balance on the first 100K units will be paid upon the completion of
production of the total order.
Feltwell had an agreement with Carlsbad, CA-based Syntron Bioresearch
to supply the tests, but it apparently fell through (Syntron makes
rapid tests for pregnancy, allergy, glucose and others, including
microwell tests for a range of infectious disease antibodies, but not
COVID-19 yet). SCWorx states that it expects to receive “equivalent
product” from another source.
The company is currently negotiating with
potential customers for the tests, adding that there are no assurances
that any agreements will be consummated. If not, then it will be unable
to fulfill its obligations under the supply agreement.
Shares remain halted per an SEC order on April 22.
https://seekingalpha.com/news/3567979-scworx-discloses-cancelation-of-52m-unit-covidminus-19-test-order
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