Business
Ener-Core and the Dresser-Rand Business Enter into Commercial and Manufacturing License Agreement for Ener-Core’s Power Oxidizers
Ener-Core and the Dresser-Rand Business Enter into Commercial and Manufacturing License Agreement for Ener-Core’s Power Oxidizers.
About this update from Ener Core Inc
[{"type":"text","content":"\n \n Ener-Core, Inc. (OTCQB:ENCR), the world’s only provider of Power \n Oxidation technology and equipment that generates clean power from waste \n and low-quality gases from a wide variety of industries, signed a \n Commercial and Manufacturing License Agreement (CMLA) with the \n Dresser-Rand business, part of Siemens Power and Gas Division. The \n Agreement grants the Dresser-Rand business the exclusive right to \n manufacture Ener-Core’s Power Oxidizers within the 1 to 4 MW power \n capacity range and to sell the Power Oxidizers (integrated with the 2 MW \n KG2 turbine manufactured by the Dresser-Rand business) directly to \n industrial customers.\n \n \n The CMLA will be effective upon the successful completion of the \n Full-Scale Acceptance Test of the 2 MW system, which is expected to \n reach completion in July.\n \n \n The CMLA will replace the existing November 2014 Commercial License \n Agreement (CLA), which did not allow for the manufacture of the Power \n Oxidizer system; upon the effectiveness of the CMLA, the existing \n Commercial License Agreement (CLA) between the Dresser-Rand business and \n Ener-Core will expire.\n \n \n As this new CMLA will allow the Dresser-Rand business to manufacture \n Ener-Core’s Power Oxidation systems, it will enable Ener-Core to reduce \n its manufacturing infrastructure and lower its operating costs, thereby \n allowing Ener-Core to focus on its core business of developing and \n deploying additional applications for its groundbreaking technology.\n \n \n Ener-Core will collect a license fee payment for each unit that the \n Dresser-Rand business sells, with the precise fee payable based on a \n percentage of the total value of each system sold. Ener-Core expects to \n collect license fees between $370,000 and $600,000 per unit. The \n Dresser-Rand business expects manufacturing of Ener-Core’s Power \n Oxidizer units to begin by the end of 2016 with initial sales occurring \n within calendar year 2016. The Dresser-Rand business has additionally \n agreed to minimum sales thresholds, beginning in 2017, to sustain the \n terms of exclusivity. Ener-Core expects that these minimum payments, \n combined with Ener-Core’s reduced operating expenses, will enable \n Ener-Core to be cash flow positive within 12 to 18 months.\n \n \n For Ener-Core, this new a...