Versarien has announced that it has, in line with its stated strategy to monetize intellectual property through licensing, entered into a manufacturing license agreement and a know-how license and technical assistance agreement with Montana Química ("Montana"). Montana is a Brazilian headquartered multinational business focused on the production and sale of paints, wood preservatives and other wood finishing products including stains and varnishes. The agreements cover the use of the Company's proprietary graphene and related material dispersions and formulations (Graphinks™) in products to be manufactured and sold by Montana in South America, together with Versarien providing further additional know-how, technical assistance and training to Montana.
Under the terms of these agreements, Versarien has granted a license to Montana, for an initial period of five years, to use certain intellectual property and know-how owned by the Company in their business in South America. Montana will pay Versarien initial fees of £50,000 in March 2024 in consideration of the know-how and technical assistance, including training, to be provided. Once Montana commences manufacturing under the agreement, a further payment of £25,000 will be due to the Company, together with an amount equal to 5% of the total sales revenue earned from products manufactured using Versarien's intellectual property and know-how, subject to minimum royalty payments of £25,000 per annum.
Dr. Stephen Hodge, CEO of Versarien, commented: "The Agreements with Montana are in line with Versarien's strategy to be a manufacturing-light business in the UK and license our patents, know-how and other intellectual property to key partners. We are very pleased to be partnering with Montana, a leading business in its markets in South America, and look forward to collaborating closely with them as they bring products enhanced by Versarien's technology to the market."
Andreas von Salis, CEO of Montana, commented: "The agreements with Versarien give Montana the opportunity to capitalize on the growing markets for graphene in Brazil with the intention to utilize graphene in application areas such as paints, coatings and lubricants."
Earlier this month, Versarien announced that it entered into an agreement with MCK Tech to sell the Group's plant and equipment in South Korea for a total consideration of £604,000, together with an exclusive license agreement with MCK Tech for the use of five patents, owned by the Group, for additional fees.