Business
GMG to Acquire THERMAL-XR(R) Manufacturing Intellectual Property and Brand Rights to Set Stage for Global Growth
Brisbane, Queensland, Australia--(Newsfile Corp. - August 15, 2022) - Graphene Manufacturing G...
About this update from Graphene Manufacturing Group Ltd
[{"type":"text","content":"GMG to Acquire THERMAL-XR(R) Manufacturing Intellectual Property and Brand Rights to Set Stage for Global GrowthBrisbane, Queensland, Australia--(Newsfile Corp. - August 15, 2022) - Graphene Manufacturing Group Ltd. (TSXV: GMG) (\"GMG\") is pleased to announce that GMG and OzKem Pty Ltd (\"OzKem\") have signed a binding agreement for GMG to acquire the manufacturing intellectual property and brand rights of OzKem's THERMAL-XR® coating products. OzKem developed the THERMAL-XR® coating system products using GMG graphene together with OzKem's base HVAC (Heating Venting and Air Conditioning) coating. GMG is an international distributor of THERMAL-XR® products with a number of global commercial demonstrations underway or initial sales completed. Following the completion of the agreement GMG will own the THERMAL-XR® brand, will buy the base coatings product from OzKem, and GMG will manufacture the THERMAL-XR® products containing GMG graphene.Under a binding detailed agreement, GMG and OzKem have agreed to the following terms:Transfer THERMAL-XR® manufacturing intellectual property from OzKem to GMG to enable GMG to manufacture the products with GMG graphene going forward;Transfer the THERMAL-XR® branding ownership from OzKem to GMG; GMG to buy exclusively from OzKem the base coating at agreed prices for a fixed period of five years. OzKem agrees not to develop graphene-based coatings for the same fixed period; and GMG to pay to OzKem an initial AU$1 million cash and a subsequent AU$1 million in ordinary shares in the Company, conditional on a successful commercial batch blend of the THERMAL XR® product completed by GMG.OzKem's Managing Director, Terry Kobler, commented \"OzKem has been working with GMG since 2018. It was obvious to OzKem that the quality of graphene supplied by GMG could make a positive impact in our development of a conductive coating to restore lost efficiency in air conditioning units. Since those early days, our partnership has grown significantly. It is a natural development in the business for GMG to take over the THERMAL XR® business and work to develop the potential of this technology.\" GMG's Managing Director and CEO, Craig Nicol, commented: \"We are excited with this next stage of the commercial maturation of THERMAL-XR® products. Together, with the partners...