The agreement is for three years with an option for an additional two years.
LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE) today reported to the Tel Aviv Stock Exchange that it has signed a memorandum of understanding (MOU) for a three-year distribution agreement with a UK company. News of the agreement sent LifeWave's share 12.69% higher on the TASE today to NIS 8.10.
The agreement provides for an option to extend for two years. Both parties can end the agreement after giving 60 days notice, providing a mechanism can be found to continue supplying LifeWave's treatments.
The agreement between LifeWave and the UK distributor is based on the profit sharing model for the Israeli company's bed sore treatment devices and peripherals. This model differs from LifeWave's other distribution agreements and the medical device company is examining various such models.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2009
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