Confirmation of the Japanese deal with Asahi Pretec -- a nice 7 year contract. Really nothing new here -- no details on the royalty %. But the market seems to like it so far today...
Eco Logic And Asahi Pretec Corporation Complete Multi-Year Licensing
Agreement For Chemical Waste Destruction In Japan
13:40 EDT Wednesday, July 05, 2000
ROCKWOOD, ONTARIO--ELI Eco Logic Inc. ("Eco Logic" or the "Company") (TSE-ELI) announced today the
signing of a multi-year licensing agreement with Asahi Pretec Corporation of Japan, whereby Asahi will utilize Eco Logic's
Gas-Phase Chemical Reduction (GPRC) Technology for the destruction of persistent organic pollutants (POPs). Under
the agreement, Asahi Pretec, a major Japanese recycling and waste management firm, has obtained exclusive rights to the
use of the Company's patented technology for all permitted applications, except the destruction of PCBs and chemical
weapons, in Japan. Terms of the seven-year agreement provide Eco Logic with a US$1 million licensing fee, payable in
two installments, and an annuity in the form of royalties based on top line revenue generated by Asahi through the use of
the Company's technology. The agreement expires on December 31, 2007, and may be renewed for an additional 4 years
upon agreement by the parties.
"The agreement creates an important alliance with Asahi and is a significant step in advancing the license-based portion of
our business model," stated Dr. Fred T. Arnold, CEO of Eco Logic. "We succeed through careful selection of partners
who desire to establish and support commercial hazardous waste destruction, and who have unique capabilities to define
and fund applications of our technology. Asahi Pretec's President, Mr. Terayama, reinforced to our Board of Directors
that his company's objective has been to acquire and utilize superior technology, and that it was with this continuing desire
in mind that he initiated discussions with Eco Logic. Asahi's current business arrangements and their fulfillment practices
complement our proven technical capabilities to deliver superior hazardous waste destruction solutions. When coupled
with existing regulatory approvals from the government of Japan, this will allow rapid deployment of GPCR for emerging
revenue opportunities in the Japanese market.
Eco Logic and Asahi anticipate near-term market opportunities that include treatment of dioxin-contaminated material, of
which there are considerable volumes in Japan, and for which regulatory permits are in place. Additional opportunities will
result from the treatment of stockpiled wastes such as hexachlorobenzene and other pesticides, and treatment and
recycling of carbon filter material contaminated with POPs. Carbon filters are widely used by chemical and metallurgical
industries in Japan and worldwide as a means of removing POPs from liquid and gaseous waste streams.
Asahi Pretec has noted that it intends to construct a GPCR plant in the near future, and that it will simultaneously begin the
process of community involvement regarding specific operating locations. The stakeholder outreach process is a critical
step in the commercial deployment of technologies like ours, and one in which Eco Logic has received substantial support
and acceptance in the past. We look forward to introducing Asahi Pretec to international non-government organizations
who have advocated the use of GPCR in recent years, and to the extent appropriate, extending this support to the
Japanese community."
Recently adopted international treaties and country-specific regulations have established new environmental stewardship
objectives associated with in-place destruction and elimination of POPs chemicals. Internationally, corporations are
recognizing the impact these initiatives will have on their bottom line performance and are seeking cost-effective,
environmentally friendly solutions. The combination of these factors enables broad commercialization of Eco Logic's
patented, internationally recognized GPCR Technology for safe, non-incineration destruction of POPs.
Asahi Pretec has been in business since 1952, and began operations by recycling silver from used photographic chemicals.
Since then, their market has expanded to include metals recycling and industrial waste treatment. Asahi Pretec currently
employs approximately 700 people, and sales for the year ended March 1999 were approximately US$240 million.
Eco Logic's business is to solve toxic chemical problems in a safe, permanent, cost effective manner. The Process is an
innovative technology that converts on-site, organic, hazardous waste into reusable or disposable products. This
non-incineration process has gained high public and regulatory acceptance. Eco Logic's worldwide hazardous waste
treatment market includes PCBs, hexachlorobenzene (HCB), pesticides, dioxins, contaminated electrical equipment,
contaminated soils, chemical warfare agents, and certain petrochemical wastes. |
