Evance Technologies25 Aug 2017 09:51
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=TYR&ArticleCode=701h9499&ArticleHeadline=Joint_Development_and_License_Agreement
Envance ( 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) has entered a Joint Development and License 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.
The Agreement which 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 will,according to CEO Bruno Jactel,benefit Tyratech in at least three separate ways.
Firstly 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).
Secondly,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.
Thirdly, 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."
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.
These benefits should serve to reduce TYRU R&D costs whilst broadening and strengthening its IP and serve to promote future profitability.
These benefits seem to have passed under the market's/investors radar imo.