The TSX Venture Exchange has accepted for filing the documentation relating to a patent ownership and royalty agreement dated Aug. 11, 2017, between Geomega Resources Inc., Innord Inc. (a subsidiary of the company) and the company's chief technology officer, Dr. Pouya Hajiani. Pursuant to the agreement, the company has granted an extraction royalty of 1.5 per cent of the net profits for the extraction products. The royalty will increase to 2 per cent if the gross profit margin (GPM) of the operation, before subtracting the royalties, is greater than 40 per cent and it will be reduced to 1 per cent if the GPM, before subtracting the royalties, is less than 15 per cent. The company has also granted a separation royalty of 3 per cent of the net sales revenue for the separation products. The royalty will increase to 4 per cent if the GPM, before subtracting the royalties, is greater than 40 per cent and it will be reduced to 2.5 per cent if the GPM, before subtracting the royalties, is less than 15 per cent. The agreement also includes a provision for a licence payment if either the company or Innord license the separation or the extraction technology, as the case may be. In such case, the company and Innord will pay Dr. Hajiani 25 per cent of all cash and the cash equivalent of any non-cash consideration derived from any license granted by the company and Innord, less all reasonable direct expenses incurred by the company and Innord in relation with the associated patent's filing, maintenance and enforcement.
For further information, please refer to the company's news releases dated Aug. 14, 2017, and Oct. 20, 2017, and the company's management information circular dated Sept. 12, 2017, available in SEDAR.
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