Promoting SYM products as royalties7 Apr 2021 21:55
HeiQ Plc
("HeiQ" or "the Company")
HeiQ Viroblock Agreement with ICP
HeiQ (LSE:HEIQ), an established global brand in materials and textile innovation which operates in high-growth markets, is pleased to announce that it has signed an Exclusive Licence and Chemicals Supply Agreement with ICP Industrial Inc, a division of ICP Group ("ICP"), the global leader in the development, application, and technical support of innovative thin film coatings which are applied to packaging used by the FMCG, pharmaceuticals and medical sectors.
The two companies have signed a five year contract (US$8m in the first two years, at which point the contract is subject to renewal) which is expected to deliver US$30m of royalty revenue to the Company ("the Minimum Exclusive Requirement") in exchange for exclusive worldwide rights to apply HeiQ Viroblock to coatings for printing processes such as commercial print, food, beverage and pharma packaging. ICP will market its products with the HeiQ Viroblock technology and trademarks to its downstream customers, which manufacture packaging products for some of the world's largest consumer brands. This will enable brand owners to market products packaged in materials with antimicrobial properties to consumers. The two companies are currently completing the product development, due to be finalized at the latest by 1st August 2021, following which the exclusivity period begins. HeiQ will supply ICP with HeiQ Viroblock, an antimicrobial technology proven to destroy over 99.99% of infectious viruses and bacteria within minutes, and will receive a percentage of ICP's net sales in the form of royalties, in line with its strategy to grow its high margin royalty and licensing business. The partnership enables HeiQ to bring its market leading antimicrobials and other HeiQ technologies into several new industry fields served by ICP.
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