BioAgra, LLC and Progressive BioActives, Inc. Announce Amicable Termination of License Agreement
posted on
Jul 12, 2007 09:45AM
The content of the press release is cut/pasted below.
I am waiting for the 8K to appear on the SEC/Edgars website. I called VytaCorp and talked with Paul regarding this press release.
What this amicable termination does is what I had hoped would be done for a couple of years.
First, it decreases the royalty payments of 7% gross to 2.5% gross sales and reduces the number of years from 18 years to 10 years.
Secondly, though not in this press release but verbally given to me by Paul (and is in the 8K), Progressive BioActives, under the old license, was allowed to purchase BioAgra's product at 10% over cost for Progressive's own sales. I have never liked that clause and wanted it gone. It was undermining our own sales.
That 10% over cost clause is gone. If Progressive wants our product, they pay full price.
Thirdly, though not in the press release, Progressive's original license hogtied BioAgra from world wide sales and certain markets in the USA. That is now gone and now we can go forward and have the world markets open to us.
As to the technology involved in producing Agrastim (BioAgra's Beta Glucan), BioAgra's production line has evolved radically from the original CAD designs that was the foundation of the Progressive BioActives license. In other words, BioAgra has made great strides forward in their own technology to produce a superior product.
When I began to understand our progress over a year ago on one of my visits to BioAgra in Hinesville, GA, I questioned the need for supporting or maintaining such a restrictive license with Progressive BioActives. Today's press release and resolution to the license is my answer to my questions.
My hat is off to the negotiator to remove such a restrictive license and to go forward and have our own patent applied for. Maybe even to keep proprietary secrets just in case???
Kent