5th Jan 2010 07:00
4 January 2010
Environmental Recycling Technologies plc
("ERT" or "the Company")
New Worldwide Licence Agreement
Environmental Recycling Technologies plc, (AIM: ENRT), which has developed and is exploiting the patented rights to the Powder Impression Moulding ("PIM") process capable of converting mixed waste plastics into commercially viable products, is delighted to announce that its licensee, 2k Manufacturing Ltd ("2k"), has signed a consolidated Master Flat Sheet licence extending the rights of their existing flat sheet licence to cover the whole of the World. This follows an assessment of their business model whereby 2k now wants to take full advantage of the worldwide value of the 'Ecosheet' brand.
2k will pay ERT a total of £2 million in instalments over the next three years by way of licence fees with credit being given for the sums already paid (£320,000) for licences already granted. The Licence also provides that the existing minimum royalties for Europe will continue to be supplemented by minimum royalties for the rest of the World. Annual royalty payments based on 2k's, and their sub-licensees, actual production (subject to the minimum positions) will provide ongoing revenue for ERT. As part of the consideration, 2k has also released back to ERT the rights to a General Construction licence, thus enabling ERT to re-market the products in the field of general construction.
Roger Baynham, Managing Director, said - 'We are delighted with the significant progress that 2k has made in the development of the Ecosheet portfolio and fully support 2k's decision to roll out that brand and its associated products on a worldwide basis.'
Omer Kutluoglu, CEO of 2k, said - 'It has become increasingly apparent that brand awareness will be a major factor in our development which has led us (with the help of our partners) to the decision that we must accelerate our international roll-out. ERT has been very supportive of our plans and as momentum increases we look forward to working even more closely with ERT.'
ENQUIRIES:
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Environmental Recycling Technologies Plc |
Tel: 0845 071 1394 |
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Roger Baynham (Managing Director) |
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Ken Brooks (Chairman) |
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Evolution Securities |
Tel: 020 7071 4300 |
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Tim Worlledge |
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Bobbie Hilliam |
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ENRT.L