Business
Full License Agreement
Full License Agreement.
About this update from Accsys Technologies Plc
[{"type":"text","content":"\n Accsys Technologies PLC\n25 March 2008\n\n\n\n\n\n25th March 2008\n\n AIM: AXS\n NYSE Euronext Amsterdam: AXS\n\n\n\n Accsys Signs Full License Agreement in Middle East\n\n\nAccsys Technologies PLC ('Accsys' or 'the Company') announces that its 100%\nowned subsidiary, Titan Wood Ltd. ('Titan Wood'), has signed a full license\nagreement with Al Rajhi Holdings W.L.L. ('Al Rajhi'), in respect of the\nexclusive rights to manufacture Accoya(R) wood in all six GCC1 (Gulf Cooperation\nCouncil) countries for an annual nameplate Accoya(R) wood production capacity of\n150,000 cubic metres.\n\n\nThe terms of the agreement, which follow Titan Wood's standard payment terms,\nprovide for technology fees and annual royalties. Having already paid an option\nfee of €150,000, Al Rajhi will make an immediate down payment of €2,850,000.\nAdditional fees will be paid subject to the timing and phasing of the\nconstruction period, with royalty payments commencing upon commercial\nproduction, expected to start in 2010.\n\n\nAl Rajhi has exclusive rights for the region for a period of four years with\nrights to increase the length of exclusivity subject to committing to increased\nAccoya(R) wood production licenses.\n\n\nWilly Paterson-Brown, Executive Chairman of Accsys commented, 'We are\nunderstandably delighted to reach agreement with Al Rajhi for exclusive Accoya\n(R) wood production rights throughout the Gulf countries. We will now jointly\nfocus on developing the market both within and beyond the region to explore the\nadditional potential of Accoya(R) wood'.\n\n\nYaser Alsharifi, Head of Corporate Finance at Al Rajhi Holdings W.L.L., added, \n'We are extremely excited by the potential of this transaction. We are already\nlooking at increased volumes and additional territories as we realise the value\nof the exclusive nature of our agreement with Titan Wood. Our region is ripe for\nthis outstanding new product, Accoya(R) wood, which for the first time will be\nable to access a high quality, environmentally friendly modified wood to\npenetrate a very lucrative market'.\n\n\n1 Gulf Cooperation Council countries: Kuwait, Bahrain, Qatar, Oman, Kingdom of\nSaudi Arabia and the United Arab Emirates.\n\n\n\n\n\nENDS\n\n\n\nFor further information, please contact:\n\n\nAccsys Technologies PLC William Paterson-Brown, +44 (0) 20 8150 8836/\n Executi...