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TyraTech, Inc. (TYR)

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Tuesday 04 July, 2017

TyraTech, Inc.

Joint Development and License Agreement

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® range of head lice treatments; Guardian™ 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 Officer

Erica H. Boisvert, Chief Financial Officer

www.tyratech.com

 

Tel: +1 919 415 4340

Tel: +1 919 415 4287

 

SPARK Advisory Partners Limited (Nominated Adviser)

Matt Davis / Mark Brady

 

 

Tel: +44 20 3368 3551

 

Allenby Capital Limited (Broker)

Chris Crawford

 

 

Tel: +44 20 3328 5656

 

 

Belvedere Communications (PR)

John West / Kim van Beeck

Tel: +44 20 3567 0510

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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