News Story
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08/10/2002 08:32:25
Microgenix Technologies signs Canadian Licence
VOICENET (AUST) LIMITED 2002-10-08 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
The Directors of Voicenet (Aust) Limited are pleased to announce the
signing of a Manufacturing Licence and Distribution Agreement between
Microgenix Technologies Limited ("MXT") and Microgenix Canada, Inc
("the Licensee"). This is the first licence signed for the
commercialisation of the Micro Electronic Air Purification Technology
("the Technology").
MXT is the joint venture company formed pursuant to the Heads of
Agreement between Voicenet (Aust) Limited and Microgenix Limited
announced to the market on 12 August 2002 ("Joint Venture"). The
Joint Venture was established to commercialise the Technology.
The Licensee is not a related body corporate of MXT or Voicenet
(Aust) Limited but has been granted the right to use the name
"Microgenix".
The principal terms of the licence agreement ("the Licence") provide
for:
(a) Licence fee of US$1,000,000 payable to MXT;
(b) 5% royalty on gross sales revenue;
(c) an initial term of 10 years; and
(d) an option for the Licensee to extend the term for a further 5
years.
The Licence fee of US$1,000,000 is to be satisfied by a deposit of
US$100,000 and the balance is to be paid over the next four years in
quarterly instalments of AUD$112,500 (US$56,250). The whole amount of
the licence fee is to be guaranteed by the Licensee and secured in
favour of MXT. The Licence is conditional on the approval by MXT of
the proposed form of security. Once the security has been accepted,
the Licence becomes unconditional and the quarterly payment
obligations begin.
In addition, the Licensee is required to meet the following sales
targets:
Year 1 - US$3,000,000 sales revenue
Year 2 - US$4,000,000 sales revenue
Year 3 (and subsequent years) - US$7,000,000 sales revenue per annum
These sales targets are broken down into quarterly targets, and if
the targets are not met for two successive quarters, MXT may
terminate the agreement.
The Licence grants the Licensee:
1. an exclusive licence of the Technology to manufacture and
distribute duct-mounted, wall-mounted and mobile air purification
units and other air purification units approved by MXT, all of which
incorporate the Technology ("Products") in Canada; and
2. the right to appoint approved distributors in Canada to sell the
Products in Canada.
The Licence is for the commercial and domestic sector within certain
approved markets.
The Microgenix air purification system has been tested at the Defence
Evaluation and Research Agency at Porton Down in the United Kingdom
where tests indicated that the system is 99.85% - 100% effective
against simulated anthrax. Initial testing also indicates that the
Microgenix technology may be highly effective against a range of
airborne bacteria,viruses and moulds including:
Legionella (Legionnaire's Disease) Aspergillus (Sick building
syndrome)
Stachybotrys (Sick building syndrome) Bacillus (Anthrax)
Staphylococcus aureus (Golden Staph) Smallpox
Rhino viruses (common cold) Enterovirus
Mycobacterium (Tuberculosis) Influenza viruses
Streptococcus bacteria Salmonella
The Directors of Voicenet believe that the Microgenix Technology and
Products incorporating the Technology ("the System") have a
competitive advantage over other air filtration and purification
technologies currently available in the market. Tests to date
indicate that its process kills airborne viruses and bacteria,
removing the risk of spreading infections and cross contamination.
The System does not use filters which need to be changed, a hazardous
procedure necessitating the wearing of safety clothing to dispose of
the waste. A further advantage is in the size and weight of the
Products. The System can be used in conjunction with air handling or
air-conditioning systems and is fully scalable to meet the demands of
large office buildings to small units for transport vehicles in the
civil and military markets. Product development to date has
demonstrated that Microgenix applications are relatively simple to
manufacture at a competitive cost.
The Joint Venture is still subject to Voicenet shareholder approval
and is conditional on a number of matters being satisfied, including
due diligence and technical analyses of the Technology.
The signing of the Licence is a major breakthrough for Voicenet. As
well as providing revenue for the Joint Venture, it is expected to
create worldwide interest for additional sales.
L Bell
COMPANY SECRETARY
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