TyraTech, Inc. Joint Development and License Agreement (0977K)
July 04 2017 - 9:29AM
UK Regulatory
TIDMTYR TIDMTYRU
RNS Number : 0977K
TyraTech, Inc.
04 July 2017
4th July 2017
TyraTech, Inc.
("TyraTech" or the "Company")
TyraTech announces Joint Development and License Agreement
between
Envance Technologies LLC and a Major Global Consumer Products
Company
TyraTech Inc. (AIM: TYR, and TYRU), a life sciences company
focused on nature-derived insect and parasite control products,
today announces that Envance Technologies LLC (Envance) has entered
a Joint Development and License Agreement (the "Agreement") with a
major global consumer products company (the "Corporation) to
develop and commercialize a range of pest control household
products based on TyraTech's nature-derived technologies.
Envance is a joint venture between American Vanguard Corporation
(NYSE: AVD) (AMVAC) which holds a 86.67% interest and TyraTech
which holds 13.33%. AMVAC is also a 15.15% shareholder in
TyraTech.
The Agreement sub-licenses Envance's existing rights to
TyraTech's intellectual property ("IP") and knowhow with
applications in the consumer household pest control sector to the
Corporation. The Agreement specifically excludes personal care
products, which are the sole property of TyraTech, such as the
Vamousse(R) range of head lice treatments; Guardian(TM) personal
insect repellants; as well as Animal Health applications.
TyraTech will benefit from this agreement in several ways.
First, all parties will share technology and expertise in the
development of new products for use in controlling pests in the
home environment, and new intellectual property created will be
jointly owned. Significantly, TyraTech will gain the right to use
the new IP in its own fields (personal care and animal health).
Second, TyraTech will be entitled to a small share of the profit
of Envance, derived from the royalties on the Corporation's net
sales of these products. Separately, in recognition of the addition
of further IP in the same household sector, Envance will pay
TyraTech associated royalties and an additional upfront cash fee of
$500,000 which will be used to fund normal working capital.
Third, it is envisaged that TyraTech will also be involved in
the development of the new products in the first few years of the
Agreement, which is being fully funded by Envance. TyraTech will
receive a fee in relation to research and development services in
line with the terms of its existing agreement with Envance.
All other terms of the Agreement are subject to strict
confidentiality clauses.
Bruno Jactel CEO of TyraTech said: "This Agreement is an
excellent endorsement of our Technology by one of the largest
consumer products companies in the world. It will also enable us to
use technology developed jointly into our own areas of operation.
Although the agreement is not expected to be transformational in
terms of profitability, it provides us with further confidence in
the significant value of our IP and knowhow and the potential and
value of our Animal Health and Personal Care portfolios."
This announcement is part of on-going normal course of business
and not part of the strategic review. The strategic review is
progressing to plan and timetable and a further update will be
given in due course.
The sale of intellectual property to Envance constitutes a
related party transaction for the purposes of the AIM Rules
(the"Related Party Transaction"). The Independent Directors of
TyraTech consider, having consulted with the Company's nominated
adviser, that the terms of the Related Party Transaction are fair
and reasonable insofar as the Company's shareholders are
concerned.
-ends-
For further information:
TyraTech Inc.
Bruno Jactel, Chief Executive Tel: +1 919 415
Officer 4340
Erica H. Boisvert, Chief Financial Tel: +1 919 415
Officer 4287
www.tyratech.com
SPARK Advisory Partners Limited
(Nominated Adviser) Tel: +44 20 3368
Matt Davis / Mark Brady 3551
Allenby Capital Limited (Broker)
Chris Crawford Tel: +44 20 3328
5656
Belvedere Communications (PR) Tel: +44 20 3567
John West / Kim van Beeck 0510
This information is provided by RNS
The company news service from the London Stock Exchange
END
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