NewGenIvf Provides Update on Status of Potential Reverse Merger with COVIRIX

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BANGKOK, June 20, 2024 (GLOBE NEWSWIRE) -- NewGenIvf Group (NASDAQ: NIVF) (“NewGen” or the “Company”), a comprehensive fertility services provider in Asia helping couples and individuals obtain access to fertility treatments, today announced that the Company is continuing to actively evaluate the terms of the proposed reverse merger (the “Proposed Transaction”) with COVIRIX Medical Pty Ltd ("COVIRIX").

NewGen and COVIRIX (collectively, the “Parties”) have conducted due diligence on each other’s business and are continuing to make solid progress towards satisfying the preconditions for completion of the Proposed Transaction. The Parties are targeting completion of the non-binding term sheet (the "Term Sheet") for the Proposed Transaction by the end of August 2024.

Mr. Siu Wing Fung Alfred, Founder, Chairman, and CEO of NewGen commented, “We are pleased to announce our positive progress on the potential reverse merger with COVIRIX. During the due diligence process for the proposed transaction, COVIRIX informed us that its treasury holds a crypto asset with significant market value, almost equivalent to NewGenIvf's current market capitalization. This crypto asset could provide valuable financing to support COVIRIX's drug development program moving forward. Operationally, we also have an exciting new development with the signing of a contract under which a channel dealer will order a very healthy amount of our IVF treatments and surrogacy services between now and the end of 2025. This commitment from a leading channel dealer represents a tremendous vote of confidence in our capabilities. As we explore strategic opportunities, we remain firmly committed to maximizing value for our shareholders. We will carefully evaluate all potential paths, including the proposed COVIRIX reverse merger, to determine the optimal route to drive long-term growth.”

Dr Kumud Dhital, CEO of COVIRIX commented, “H5N1 Avian Flu has already spilled over from poultry to mammals to humans. In the last 6 months, there have been 12 human cases reported globally, three of which were in the USA. While these cases are unconnected, the genetic evolution of the virus, and high mortality rates in humans, raise significant concern about the risk and implications of human-to-human transmission of the Avian Flu virus. Since 2003, Avian Flu infections have had a mortality rate just over 50%, far higher than the initial 20% and now 0.1% seen with COVID-19. In light of this, we are commissioning urgent virology studies applying our primary antiviral drug candidate, against the Avian Flu virus, in addition to other RNA respiratory viruses. Results from these studies are expected within the next three months. Positive outcomes will pave the way for clinical trials as we seek to deliver a targeted, economical, and effective antiviral treatment for Avian Flu and a range of respiratory diseases administered via oral inhalation directly to the respiratory tract.”