RE: cpx6 Aug 2018 10:33
Under the terms of the licence, CAP-XX will receive annual licence fees, plus quarterly guaranteed minimum royalty payments, over a three-year period denominated in Sterling, reflecting the fact that CAP-XX is quoted on AIM.
Thereafter, CAP-XX will receive a 5% royalty for the life of the patents, with the royalty being based on the volume of sales of supercapacitors sold by AVX covered by CAP-XX patents. The initial licence fee of GBP1 million, which has been booked as revenue in the FY16 financial year, was paid by AVX in early July 16, with the first royalties under this licence already having been received
Read this chaps from 15/16 results RNS. Does it not say AVX will pay guaranteed minimum royalty payments for 3 year (but does this equate 5% or more?). Difficult to ascertain whether a 5% throughout would have been a better deal. What is sure is that from Mar 2019 there will be no more licence fees only the 5% royalties