Promino faces claim of unpaid royalty fees

Executive Summary

• Promino Nutritional Sciences Inc. has completed a reformulation of its key products (Rejuvenate Muscle Health and Promino) to utilize a new amino acid blend, thereby eliminating reliance on a previously patented formulation and avoiding future patent sublicense expenses.
• The company is facing a legal claim from EightIP LLC, its former patent sublicensor, for unpaid royalty fees following the termination of the sublicense agreement; the company intends to defend itself and seeks an amicable settlement.
• The company is working with auditors to file outstanding financial reports to have a continuing cease trade order (imposed May 8, 2025, by the Ontario Securities Commission) revoked, with the goal of resuming trading on the Canadian Securities Exchange.

Key Details

• Product Reformulation:
  • Products affected: Rejuvenate Muscle Health and Promino.
  • Change: Shifted from a patented formulation to a new amino acid blend.
  • Impact: Eliminates future patent sublicense expenses while maintaining product efficacy for customers.
• Legal Dispute:
  • Counterparty: EightIP LLC (patent sublicensor).
  • Action: EightIP terminated the sublicense agreement and filed a claim in the state of Nevada for damages regarding unpaid royalty fees and related remedies.
  • Company Stance: The company identifies available defenses and is working toward an amicable settlement.
• Regulatory Status:
  • Current Status: Subject to a continuing cease trade order imposed by the Ontario Securities Commission on May 8, 2025.
  • Objective: File outstanding financial reports to become eligible for revocation of the cease trade order.
  • Goal: Resume trading on the Canadian Securities Exchange.

Notable Quotes

• "The reformulated product no longer relies on the patented formulation previously employed by the company, eliminating the need to incur future patent sublicense expenses, while still delivering excellent results for the company's customers."
• "On review of the claim, there are a number of defences available to the company, and the company is working to achieve an amicable settlement."
• "The company also advises that it is working diligently with its auditors to file outstanding financial reports in an effort to become eligible to have the continuing cease trade order imposed on May 8, 2025, by the Ontario Securities Commission revoked so that it may resume trading on the Canadian Securities Exchange."