Rns...18 Mar 2010 07:39
LONDON (Dow Jones)--Torotrak Plc (TRK.LN), a full-toroidal traction drive transmission technology company, announced Thursday that it has received a GBP3.75 million license and option payment in relation to the License and Exclusivity Agreement signed on March 16, 2009 with Allison Transmissions, Inc. MAIN FACTS: -This brings the total license payments now paid under the Agreement to GBP8.44 million. -These initial payments have provided Allison with non-exclusive license rights over Torotrak's full-toroidal traction drive technology in the medium-sized commercial vehicle market, together with options to secure global manufacturing and sales exclusivity in this sector. -Following this payment, the company remains on course to achieve its target to break even on a profit after tax basis for the financial year to Mar. 31, 2010. -Under the Agreement, Allison has further options to purchase, at a future date, a non-exclusive license for Torotrak's technology in relation to applications in large commercial vehicles and further options to secure worldwide exclusivity (except for Torotrak's existing licensees in this field) across the commercial vehicle market. -Total additional fees payable to Torotrak could amount to a further GBP6.75 million to GBP17.37 million, payable over the next three years, depending upon when, or if at all (in which case no additional fees are payable), these rights are taken up by Allison. -Shares closed Wednesday at 26.50 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com (END) Dow Jones Newswires March 18, 2010 03:37 ET (07:37 GMT)