17th Apr 2015 06:54
LONDON (Alliance News) - Plastics company Carclo PLC on Friday said it has struck a deal to licence the fine line technology held by its CIT Technology business to UniPixel Inc under a five-year deal.
Under the deal, CIT, Carclo's flexible electronic circuit boards unit, will receive payments of the greater of USD1.65 million per year or 1.67% of annual net product sales. CIT has received an initial cash prepayment of USD4.67 million of the agreement and said the royalty payments due from UniPixel may be paid in secured loan notes or cash.
The maximum royalties payable under the initial and renewal agreements secured with UniPixel is capped at USD30 million, Carclo said.
CIT has also signed a short-term coated film supply deal with UniPixel which will expire in October. The agreement is expected to result in CIT breaking even over the period prior to the costs associated with the closure of its facility in Cambridge.
Since starting a strategic review of the CIT business last year, Carclo has considered a range of options for the business and says it believes the licensing deals signed with UniPixel represent the best conclusion to the review.
By Sam Unsted; [email protected]; @SamUAtAlliance
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