Applied Nanotech Holdings, Inc. said that following the successful completion of the research and development portion of its agreement, an unnamed sporting goods partner has exercised its option to license its CNT composite technology for use in golf club shafts.
The agreement follows the previous license agreement for tennis and badminton racquets that was signed in October 2008, with the same manufacturer.
This license agreement grants the sporting goods manufacturer the exclusive right to use Applied Nanotech's CNT composite technology in the manufacture and sale of golf club shafts in Japan and Taiwan, and the nonexclusive rights to sell the product on a worldwide basis. In exchange for this license, ANI will receive an upfront royalty payment in December 2010, and an ongoing royalty based on sales of the sporting good manufacturer's products using the technology. We expect that our partner will have products on the market in early 2011 and publicize those products prior to their introduction.
“Working together with our partner, we have achieved considerable improvement in the flexural strength of FRPs, which is equivalent to the realization of better than 10% lighter products while preserving their mechanical strength,” said Dr. Zvi Yaniv, CEO of Applied Nanotech, Inc. “These results will allow our partner to introduce new and improved products in the market and we expect these products to be introduced in early 2011.”
“This agreement will further increase our profitability in 2010, which was previously discussed in the November 15, 2010 shareholder letter posted on our website,” said Doug Baker, CEO of APNT. “We are pleased to complete this important agreement and look forward to having this first product using our technology in the marketplace generating royalties. More importantly, we expect several products from various partners to hit the market and generate recurring royalties in 2011.”
