Orlando, FL 7/12/12 (StreetBeat) -- GTX Corp (OTCBB:GTXO), a leader in customizable, patented 2-way GPS solutions and GPS Care Limited, headquartered in Hong Kong, recently signed a letter of intent to formulate a joint venture to set up commercial operations to sell, distribute and support the entire GTX Corp platform of GPS enabled hardware, software, connectivity and monitoring services.
Under the agreement GPS Care Limited will contribute $2 million in cash along with human resources and local infrastructure. Whereas, GTX shall make non-cash asset contributions including, licensing of Intellectual Property, technology, general know-how, human capital, contracts, sales leads; as well as the rights to sales and distribution of all GTX products and services including its flagship GPS Smart Shoe and Smartphone Apps. Initially the operating regions shall be confined exclusively to Hong Kong, Macau, Taiwan, and the People's Republic of China, however may expand to neighboring countries such as the Philippines, Indonesia, Malaysia and Thailand upon further market analysis and final approval by GTX Corp.
Upon completion of funding GTX Corp and GPS Care Limited shall execute a definitive Joint Venture Agreement facilitating the launch of the GPS Personal Tracking technology owned by GTX Corp and its subsidiaries. GTX Corp will initially own 45% of the JV and have 2 out of the 5 board seats. It is the intention of both parties that the agreement will be completed by or before September 30, 2012; however, the parties may extend the execution date if they mutually see the need and agree to do so.
GPS Care Limited was founded by Dr. Wing Leung who received his Ph.D in Applied Physics from Stanford University and served as the President of Gemstar Technology, Inc. from 1996 to 1999. From 2000 onward he has been the President of CNLink Networks, Inc. providing Internet services for International Enterprises in China and is on the board of ANPAC Semiconductors Limited, based in Hong Kong.
GTX Corp had been exploring ways to penetrate the Asian markets for several years and even signed a Platform Test Agreement last year with a local footwear manufacturer, which after several months' negotiations ended. "After exploring this very large market with such tremendous potential for over a year, our board felt that forming a joint venture rather than looking for a distributor, would give us more input in the process and more equity in the outcome and this would be a far more effective way to enter the Asian markets. Dr. Leung brings a core understanding of the region and proven track record in building technology companies and we look forward to working with him and his team," stated Patrick Bertagna, Chairman and CEO of GTX Corp.
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