What is Union Pacific Trading Pty Ltd 's relationship with UPE a major shareholder of PPY ?
Has a licence been issued to UPT to manufacture PPY PATENTED PRODUCTS products in China ?
Please advise progress of development plan to JULY 2021 : Stage five requires the execution of a contract between PPY and the JV Company no later thanthe end of July 2021, together with the payment of a deposit to PPY for the purchase ofproprietary plant and equipment necessary for the first project in accordance with the agreed business plan.
ASX ANNOUNCEMENT
8 February 2021
Papyrus grants “first right” to exploit technology in China
Highlights:
• Significant shareholder UPE introduces new China opportunity
• UPE related entity Union Pacific Trading (UPT) signs MOA
• PPY contemplates first “turn-key” factory in China in 2022
• UPT commits to establish Chinese entity and operations
• Sale of “turn-key” factories to produce moulded banana fibre products
• China’s unmet need for sustainable packaging to be addressed
• First PPY banana fibre manufacturing operation outside Egypt
Papyrus Australia Ltd (ASX
PY)(“Company”/”Papyrus”) a world leading “agricultural waste fibre
technology company” is pleased to announce the signing of a Memorandum of Agreement (MOA)
with Union Pacific Trading P/L an entity related to significant shareholder Union Pacific Equities P/L
(UPE).
As previously announced PPY intends to advance to a second stage of corporate development and to
sell turn-key factories to produce banana fibre products to operators in other banana growing
countries once construction of the proposed Egypt moulded fibre factory is operational.
China is the second largest producer of banana and China has a plastic packaging waste problem
which the Chinese government demands be addressed. Papyrus can assist by selling “turn-key”
factories and licensing the rights to establish banana fibre product manufacturing facilities in China
which is contemplated by the MOA which was signed and formally agreed to on the 7th February
2021.
The MOA contemplates a 5 stage milestone process, namely:-
• Stage one contemplates the establishment of a joint venture
company under Chinese Law, with a completion date target of end
of March 2021.
• Stage two requires the JV Company to undertake comprehensive
project research in China regarding the Government and all other
requirements to establish the first Project within or near the banana
growing areas.
• Stage three would requires the JV Company to organise in 2021 field
trips for PPY officers to travel to China to assess the proposed site for
the first manufacturing facility and inspect the available banana
plantations.
• Stage four requires the develop a business plan for the JV Company
to undertake the first Project which will require patented Papyrus
2
equipment and other proprietary fibre processing machinery
required for the first Project.
• Stage five requires the execution of a contract between PPY and the JV Company no later than
the end of July 2021, together with the payment of a deposit to PPY for the purchase of
proprietary plant and equipment necessary for the first project in accordance with the agreed
business plan.
PPY has offered to grant UPT the Intellectual Property Licence necessary to enable the undertaking of
the Project, subject to further exploration and negotiation of relevant commercial terms and
conditions and entering into formal binding agreements. UPT which has established relations in China
