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:
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.
