3DM Worldwide PLC
07 November 2003
Press Release 7 November 2003
3DM Worldwide announces US licensing deals
and a US$1.35 million machine hire agreement
Dodge Dakota & Silkwood licensing agreements
3DM Worldwide plc ('3DM' or the 'Company') has agreed terms with Global
Technologies Inc. ('GTI') of Delaware and Michigan, whereby GTI will take
management control of the Dodge Dakota tipping truck bed project and the
Silkwood Modular Housing Project in Mexico. The Company has pursued this course
of action to give greater focus towards its strategy of licensing 3DM's
GTI is a company that has been established to manufacture components using the
3DM Powder Impression Moulding ('PIM') process. Although the Company holds no
shares in GTI, Mr Mario Di Nello, the former President of its US subsidiary 3DM
Technologies Inc. ('3DMTI'), is President of and a shareholder in GTI. Mr Di
Nello has no involvement in the management of 3DMTI, having stepped down as its
President last year. Mr Di Nello has over 20 years of experience in the
plastics industry and was a Director of 3DMTI from its inception in 1996 until
last year. 3DMTI was the original developer of the PIM process, and was
acquired by the Company in 2001. Mr. Di Nello was directly responsible for
introducing the Dodge Dakota and Silkwood projects to 3DM.
With respect to Silkwood, 3DM will continue to benefit from the original
financial arrangements as stated in the AIM admission document of October 2002.
In this regard, the Company will receive a 10 per cent royalty on revenues
generated, with a minimum of US$15 million over five years once development work
is completed, which is anticipated shortly.
3DM has also granted GTI a licence to extend the Silkwood project to the United
States, where a potential market opportunity has been identified in the southern
states, and particularly in Texas. Royalty payments will be separately
negotiated for each case, and the structure of these will typically follow the
original Silkwood model.
Having previously commissioned and completed the research and development of a
truck bed for the Daimler Chrysler Dodge Dakota after-market, 3DM has agreed to
transfer direct responsibility for sourcing the manufacture and sales to GTI.
Production of the after-market tipping truck beds has already commenced and the
first revenues are expected at the end of 2003. 3DM will receive 10 per cent of
all revenues in royalty fees, and significant revenues are anticipated in 2004.
As part of the arrangements described above, GTI has procured the cancellation
of the agreements that the Company formerly had with 3DM International Inc. ('
3DMI'), from whom the Company acquired 3DMTI in 2001. Under these agreements,
the Company was to pay to 3DMI 10 per cent of all royalties earned by 3DMTI in
any North American Free Trade Association ('NAFTA') territory. 3DMI was also to
undertake certain research and development activities in the USA, which will now
be undertaken under the Company's own management in the UK or under bespoke
contract in the USA. No liability accrues to either party as a result of this
Machine Hire Agreement
3DM has also agreed to lease one of its prototype PIM machines to Value Plastics
Technology Inc. ('VPT') of Michigan over a five-year period at US$22,500 per
month. This will recover all the money 3DM spent on the development of this
machine. VPT will use the machine initially to conduct research and development
under a non-exclusive licence on potential PIM applications within the consumer
building materials industry in the United States.
VPT is a specialist plastics business whose activities include the manufacture
of plastic processing machinery. Under the terms of the agreement, 3DM is being
granted a 20 per cent interest in VPT, whose President and Chief Technical
Officer is Miguel Linares. Mr Linares, who is also Chief Technical Officer of
3DMTI, will also be a shareholder in VPT, although the majority of the shares in
VPT will be held by parties unconnected with 3DM.
Upon completion of the relevant research and development phase, 3DM will receive
a 10 per cent royalty on sales under any specific agreements that VPT reaches
for the PIM process in relation to the consumer building materials industry in
the United States.
To maintain control over its Intellectual Property, 3DM will have the right to
refuse any specific opportunities introduced by both GTI and VPT. Furthermore,
3DM will retain ownership of the existing intellectual property, as well as any
new intellectual property generated as a result of GTI and VPT's discussions
with other parties.
Ken Brooks, Chairman of 3DM Worldwide plc, said: 'The agreements with GTI fit
perfectly with 3DM's business model, which is to retain ownership and control
over its Intellectual Property while establishing a stream of licence and
royalty income from manufacturing processes that use our Intellectual Property.
GTI is well positioned to exploit our processes in the United States, while we
focus on sourcing new licensing agreements in other markets and territories.
Both the Dodge Dakota and Silkwood projects are well advanced and we expect
revenues to commence soon.'
'This research and development agreement with VPT reflects the true value of
3DM's Intellectual Property. The significant interest expressed in the
application of the 3DM PIM process for building materials, as demonstrated by
negotiations that VPT is already having with a number of potential customers in
this field, provides further vindication of our Company's strategy.'
- Ends -
For further information:
3DM Worldwide PLC
Ken Brooks, Chairman Tel: +44 (0) 1993 779 468
Bankside Consultants Limited Tel: +44 (0) 20 7444 4140
Henry Harrison-Topham / Chris Munden
This information is provided by RNS
The company news service from the London Stock Exchange GFZM