5th Jun 2008 10:15
5 June 2008
HYDRODEC GROUP PLC
("Hydrodec" or the "Company")
PRE-PAYMENT AND CANCELLING OF CSIRO ROYALTY
Hydrodec is pleased to announce that CSIRO (Commonwealth Scientific and Industrial Research Organisation), owner and licensor of the Hydrodec patent, has agreed to accept a one-off cash payment of AU$5.6 million (£2.75 million) as complete pre-payment of all royalties due under the Hydrodec technology licence agreement (the "Licence Agreement"). Under the Licence Agreement, Hydrodec was obliged to pay CSIRO a royalty of 5% of the gross revenue earned by the company from the Hydrodec technology for the life of the patent. As a result of the pre-payment, the royalty payment is cancelled and there are no other financial liabilities of any type due to CSIRO.
Chairman John Gunn commented "Pre-payment and cancelling of the CSIRO royalty, combined with the pending cancelling of royalties payable to the Virotec Group, will mean 100% of all future revenues earned will accrue straight to the Company. This is an ideal time in the growth of Hydrodec for this to happen and will greatly enhance future earnings."
For further information please contact:
John Gunn, Chairman
Hydrodec Group plc
Tel: 0207 621 5774
Emma Davis
Curve PR
Tel: 07764 197 003
Anthony Richardson
Nick Westlake
Numis Securities
Tel: 0207 260 1000
Related Shares:
HYR.L