VANCOUVER, BC / ACCESSWIRE / June 1, 2023 / EvokAI Creative Labs Inc. (TSX-V:OKAI) ("EvokAI" or the "Company"), a leading MedTech AI-powered company dedicated to the development of transformational and innovative technologies for the healthcare sector, is pleased to announce that it has entered into a definitive agreement (the "Share Purchase Agreement") dated effective May 16, 2023, that was negotiated at arm's length, pursuant to which the Company intends to acquire (the "NeuroCarrier Acquisition") all the issued and outstanding securities of NeuroCarrier Oy ("NeuroCarrier"). NeuroCarrier combines cognitive neuroscience, extended reality ("XR") and artificial intelligence ("AI") technologies for enhanced performance screening and spatial perception of a person as well as risk behavior.
Following the closing of the NeuroCarrier Acquisition, NeuroCarrier will be a wholly owned subsidiary of EvokAI. Completion of the NeuroCarrier Acquisition is subject to a number of standard conditions, including receipt of all regulatory approvals and the acceptance of the TSX Venture Exchange ("TSXV"). The NeuroCarrier Acquisition is expected to close in June, 2023.
"The acquisition of NeuroCarrier allows us to redefine the evaluation of human performance, enhance safety in various contexts, and transform the early detection and management of brain diseases. NeuroCarrier's unique technology provides a comprehensive and objective assessment of an individual's cognitive abilities, risk behavior, and driving maturity. In the United States alone there are 233 million licensed drivers, and when it comes to accidents, people aged 21 to 24 are most at risk1. There is an urgent and growing need to assess brain health, not just because people live longer but also because the importance of cognitive enhancement in today's fast-paced world. NeuroCarrier's virtual reality driving simulator using high performance eye-tracking technology fills this need, allowing EvokAI to exponentially increase its revenues given the low-cost XR test and its easy-to-scale path," commented Alejandro Antalich, CEO and Director of EvokAI Creative Labs.
"With a deep understanding of deep brain simulation from our previous acquisition of Head Instruments, we recognize the significant challenges faced by individuals with neurological disorders, as well as those seeking to optimize their cognitive abilities, which motivates us to take a significant step towards brain implants, enabling precise interventions and personalized treatments. By providing neurostimulation, neural modulation, and real-time monitoring, our implants could potentially alleviate symptoms, restore lost functions, and improve overall quality of life for patients," added Antalich.
"Our team of dedicated scientists, engineers, and medical professionals work tirelessly to refine brain implant solutions that are safe, effective, and designed to target a wide range of neurological disorders such as epilepsy, Parkinson's disease, Alzheimer's disease, and traumatic brain injuries. We envision a future where brain health and cognitive function are no longer hindered by neurological disorders or limitations. Through our relentless pursuit of breakthrough technologies, we strive to transform lives, empower individuals, and contribute to the greater understanding of the human brain," concluded Antalich.
NeuroCarrier is a private company founded in 2021 under the laws of Finland by renowned professionals with unique expertise in psychophysics and neural mechanisms of the somatosensory system (tactile system and haptics) to biases in spatial attention and perception. Its CEO is a former Finnish Air Force Officer who has over 15 years of experience in training and high-tech simulation starting from flight instructor and reaching the position of Chief of Air Force Training.
"The science of assessing cognitive performance in a virtual reality driving environment, measuring more than thirty variables from reaction times to eye movement and fixations or reaction curves provide unprecedented accuracy. Our AI-powered technology allows us to handle large amounts of data, finetune the XR test and determine performance thresholds individually. Traffic has become an area of life that concerns millions of people every day and we are excited to provide a scientifically valid solution to increase safety," said Jarmo Majapuro, Founder and CEO of NeuroCarrier.
"We are proud to see that XR-technology originating from our university finds a route to commercialization through EvokAI. We are ready to support the further development of the technology also in the future," commented Professor Vesa Taatila, President & CEO of Turku University of Applied Sciences, Finland, shareholder of NeuroCarrier.
Pursuant to the terms of the Share Purchase Agreement, holders of 100% of NeuroCarriers' common shares ("NeuroCarrier Shares") will be issued 2,202,000 common shares of the Company (the "Shares") having an aggregate value of EUR 3,000,000, as consideration in exchange for their NeuroCarrier Shares. The Shares issued will be subject to an agreed hold period ending 1 year from the date of issuance. Up to an additional 367,000 common shares of the Company may be issuable to the current holders of NeuroCarrier Shares upon NeuroCarrier achieving certain milestones on or before November 16, 2023.
1 Statista: Total number of licensed drivers in the United States in 2021
About EvokAI Creative Labs Inc.
EvokAI is a MedTech AI-powered company dedicated to the development of transformational and innovative technologies for the modern healthcare sector. We deploy machine learning models to search medical data and uncover insights to help improve health outcomes, patient experiences, drug development, preclinical and clinical decisions and provide more accurate diagnoses. EvokAI tailors its AI algorithms across the whole healthcare system, from hospitals, private clinics, research institutions, pharmaceutical companies, contract research organizations, to medical professionals, patients, healthy individuals aiming at preventing any kind of disease and beyond, protecting the aging genome.
On behalf of the Board of Directors of EvokAI Creative Labs Inc.
Alejandro Antalich CEO & Director
For more information, please contact: EvokAI Creative Labs Inc. Alejandro Antalich Chief Executive Officer Email: email@example.com Phone: +358 50 5512 848
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Generally, any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information or statements. The forward-looking information or statements in this news release may relate, among other things, to: the completion of the NeuroCarrier Acquisition; the anticipated benefits of the NeuroCarrier Acquisition to the Company and its shareholders; the future growth potential of the Company on a post-transaction basis; the intention to scale operations; the accretive nature of the NeuroCarrier Acquisition, including expected synergies thereof; future financial performance; and receipt of all regulatory approvals.
These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the expected results from the completion of the NeuroCarrier Acquisition; receipt of all required regulatory approvals including the approval of the TSXV; business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the Company's limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the technology industry; unproven markets for the Company's product offerings; lack of regulation and customer protection; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; network security risks; the ability of the Company to maintain properly working systems; foreign currency trading risks; use and storage of personal information and compliance with privacy laws; use of the Company's services for improper or illegal purposes; global economic and financial market conditions; uninsurable risks; changes in project parameters as plans continue to be evaluated; and those factors described under the heading "Risks Factors" in the Company's filing statement dated March 27, 2023 available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.