AKR.L Regulatory News (AKR)

13 June 2013

Akers Biosciences, Inc.

("ABI" or the "Company")

Extension of Licence and Supply Agreement

$1.6 million share subscription

Akers Biosciences, Inc (AIM: AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products, is pleased to announce that it has extended its licence and supply agreement dated 19 June 2012 (the "Licence and Supply Agreement") with Chubeworkx Guernsey Limited ("Chubeworkx") to cover the United States, Canada and Mexico.

In 2012, ABI announced that it had negotiated a multi-year breathalyser agreement with Chubeworkx pursuant to which the Company granted Chubeworkx an exclusive licence to market and distribute private-labelled versions of ABI's disposable breath alcohol detectors, to be supplied by the Company, outside the United States of America, Canada and Mexico. Chubeworkx and its indirect subsidiary, en10 Global Limited ("en10") have since initiated an extensive marketing programme in France to support the launch of the NF-Marked version of CHUBE-branded breathalysers. As announced on 10 April 2013, Chubeworkx has already ordered 4.9 million breathalysers and, with a marketing exercise currently underway, the Company believes it will receive future orders. Whilst the majority of this marketing has been aimed at the French market, with all drivers on French roads, including foreign passport holders and drivers of foreign vehicles legally required to carry at least one un-used NF Approved disposable breathalyser kit, Chubeworkx, through en10, also has active sales and marketing initiatives in the UK, South Africa and Australia under the "BE CHUBE" alcohol awareness programme. The extension of the Licence and Supply Agreement will allow the marketing and distribution of the "BE CHUBE" programme to be expanded worldwide using the ABI breathalyser.

In addition, Chubeworkx has agreed to subscribe for 80,000,000 new common shares (the "Subscription Shares") in the Company for a total price of $1,600,000 (the "Subscription"). Chubeworkx' desire to acquire an equity stake in ABI furthers its commitment to the Company's commercial success within and beyond the disposable breathalyser business segment. Chubeworkx has well-established business relationships in Africa and Asia where there is potentially strong demand for ABI's infectious disease rapid assays.

Under the terms of the Subscription Agreement, which is conditional upon admission of the Subscription Shares to trading on AIM ("Admission"), Chubeworkx can, at any one time, nominate one individual to the Board of Directors of ABI, subject to the AIM Rules for Companies. The Subscription Shares will represent 28.7% of the Company's common stock immediately following Admission.

The Company also announces that it intends to change its by-laws to, inter alia, ensure that, at all times, the unanimous approval of the Board of Directors of the Company shall be required for any issuance by the Company of any new shares of capital stock of the Company or any instruments convertible into shares of capital stock of the Company. This change in the Company's by-laws is expected to be tabled as a resolution at the next general meeting of the Company. Chubeworkx, Thomas Knox, Ray Akers and Thomas A. Nicolette, who in aggregate will hold, post Admission, 53.2% of the voting rights in the Company, have each undertaken to vote in favour of the proposed changes to the Company's by-laws.

In addition to the Subscription, ABI and Chubeworkx have entered into a share purchase agreement pursuant to which ABI will sell its 20% interest in (en)10 Guernsey Limited to Chubeworkx for $100,000.

Application has been made for Admission, which is expected to occur at 8.00 am on 14 June 2013. On Admission, the Subscription Shares will rank pari passu in all respects with the Company's existing common shares in issue. Immediately following Admission, the Company will have 278,815,666 common shares in issue and 10,000,000 preferred shares ("Preferred Shares") in issue. The Preferred Shares each have five votes per share and the Company has no ordinary shares held in treasury. The total number of voting rights is therefore 328,815,666. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.  

Immediately following Admission, Chubeworkx will hold 28.7% of the Company's common stock and 24.3% of the voting rights in the Company.

Thomas A. Nicolette, President and Chief Executive Officer of ABI commented, "Our partnership with Chubeworkx is delivering measurable results to the Company's bottom line. Their extensive "BE CHUBE" promotional programme is helping to transform the way people from among the most at-risk populations view alcohol consumption and emphasise the importance of proactive testing with CHUBE breath alcohol detectors. We believe that our decision to expand CHUBE's reach into North America will facilitate a global presence and likely demand for ABI-manufactured private-label disposable breathalysers."

Gavin Moran, Chairman of Chubeworkx also noted, "Our partnership with ABI has provided us with a keen understanding of the capabilities of, and exciting potential for, ABI's proprietary platform technologies. This strategic view has led us to a significant investment in the Company and a direct commitment to its commercial success. We are excited about the immediate prospects for the global CHUBE change programme and, looking to the future, to the potential opportunities from leveraging our presence in Africa and Asia to distribute ABI's diagnostic products into new markets."

Enquiries:

About Akers Biosciences, Inc.

Akers Biosciences develops, manufactures, and supplies rapid, point of care screening and testing products designed to bring healthcare information both rapidly and directly to the consumer or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of several proprietary platform technologies. The Company's state-of-the-art rapid diagnostic assays can be performed virtually anywhere in minutes when time is of the essence. ABI has aligned with major healthcare companies and high volume medical products distributors to maximize product offerings, and to be a major worldwide competitor in diagnostics. Additional information on the Company and its products can be found at www.akersbiosciences.com

About Chubeworkx / en10 Global Limited

Combining leading science innovations and clever design, en10, an indirect subsidiary of Chubeworkx, provides people the means to effect simple, precise, low-cost alcohol screening and programmes and products to encourage broader, positive changes in attitudes to responsible alcohol consumption. It provides a fresh approach to achieving a healthy work culture and a more productive business: cutting costs and improving lives. Additional information on the company and its products can be found at www.en-10.com