Voxx subsidiary EyeLock forms joint venture with GalvanEyes Partners

Voxx’s majority owned subsidiary EyeLock has entered into a joint venture agreement with GalvanEyes Partners to form BioCenturion. Both companies will be contributing selected assets and liabilities to the joint venture. GalvanEyes will serve as the managing member and will be responsible for all working capital needs over the next two years, after which, the companies will evaluate the best path forward for the business. The new entity will be run by Allen Ibaugh, who served both as President of EyeLock and CEO of GalvanEyes and will combine and manage the talent from both organizations. BioCenturion has been structured as a 50/50 joint venture, whereby GalvanEyes will manage all day-to-day business operations and EyeLock will have veto rights as it relates to various fundamental company matters. In the event of a capital event and based on respective capital contributions to date and expected, the first $45.0M from a capital event would get preferential distribution rights with ~77% going to EyeLock and ~23% to GalvanEyes, and the remaining portion split evenly between the companies. EyeLock will retain the liability of the approximate $70M Note due to Voxx, which is not part of this transaction. In conjunction with this transaction, Beat Kahli has stepped down as President of Voxx but will continue to serve as co-Vice Chairman of the company’s Board of Directors.