Cyclopss to Purchase Consumer Appliance
Manufacturer
SALT LAKE CITY, March 4 /PRNewswire/ -- Cyclopss Corporation (OTC Bulletin Board: OZON - news)
announced today that its has entered into a Letter Of Intent to acquire the Chicago-based consumer appliance
manufacturer, Otres, LLC.
Cyclopss is an ozone technology and product development firm that originally developed the prototypes of
consumer sanitizing appliances being manufactured and marketed by Otres. The Otres Toothbrush Sanitizer
and Otres Kitchen Sponge Sanitizer utilize the germ killing capabilities of Activated Oxygen (Ozone) to destroy
dangerous pathogens. The Sanitizers kill a minimum of 99.9% of the germs and bacteria found in the bathroom
on toothbrushes, and on foods and surfaces that end up being spread throughout the kitchen by the kitchen
sponge. Ozone (03) is a form of oxygen with extraordinarily aggressive germ killing abilities, killing E. coli 3,125
times faster than chlorine. After the sanitizing cycle, ozone reverts back to its original harmless phase as
oxygen, leaving no chemical residues behind.
As part of the original development agreement between the companies, Cyclopss was to receive royalties on
consumer product sales over a two-year period, from late 1999 to 2001. However, the difficulty of transitioning
the products from prototypes to quality mass-produced consumer products was underestimated. This caused
lengthy delays in product introduction and shipping, ultimately putting Otres behind its plan, and Cyclopss
beyond the royalty term, without producing the expected royalty income.
Under the terms of the current agreement Cyclopss will acquire all the assets of Otres, including inventories,
patents, trademarks, UL and FDA approvals, tooling and specialty production equipment. The transaction
includes payment of cash, securities and the assumption of certain Otres liabilities.
Dr. Durand Smith, the President of Cyclopss, says, ``We believe that we are in a unique position to effectively
reintroduce these products to the market through working strategic and financial relationships we have
established with other consumer product companies. The end result puts a much needed disease prevention
technology in the hands of consumers and gives Cyclopss control over the destiny of its products.''
Cyclopss Management stated that it is in negotiation with independent selling agents and agencies to expand
the marketing efforts, to include additional catalogs and small specialty retailers initially. Cyclopss plans to
continue manufacturing the products at existing facilities in Chicago under a per-piece contract manufacturing
agreement, but has plans to move manufacturing off-shore as soon as practical in order to reduce cost and
increase production. Management further stated that with the manufacturing and marketing conduits this
acquisition creates for Cyclopss, they may consider other product developments and licensing projects they are
engaged in with other consumer products companies for private label manufacture, or manufacture and market
them under the Otres brand.
CYCLOPSS is a world leader in the development of environmentally friendly technologies and applications that
are used in the cleaning and disinfections of foods, laundry, and surfaces for industries as well as consumers.
For more information visit our website at www.cyclopss.com .
SOURCE: Cyclopss Corporation
biz.yahoo.com |
