Hillcrest Petroleum Ltd (CVE:HRH) (OTCMKTS:HLRTF) said Wednesday that its previously announced US licensing agreement with Oropass Limited has been executed, enabling “development, licensing, and marketing” of US patented electricity generation and electric motor technologies.
Vancouver-based Hillcrest said it will contribute a minimum of C$300,000 and up to C$500,000 for the development of the technology, to be paid to an incorporated joint venture between Hillcrest and Oropass Limited in ALSET Innovations Inc.
Hillcrest said the licensing agreement provides “exclusive dealing rights” for technology which includes all “current and future technologies created and/or patented by Potential Difference Innovations Inc (PDi).”
Hillcrest said the agreement enables the company to engage with parties in licensing, co-developing or joint venturing the technologies through Hillcrest’s wholly-owned technology subsidiary ALSET.
Hillcrest expects to issue common shares in the capital of ALSET to Oropass through a shareholders agreement. Hillcrest said Oropass will ultimately hold 50% of ALSET shares, while Hillcrest will hold the remaining 50%. At such time, it is anticipated that Hillcrest will assign the licensing agreement to ALSET.
Hillcrest will directly receive 25% of net value generated under the license agreement, as well as fees for managing related business activities including business planning, marketing and concluding agreements with potential technology partners on behalf of the owner of the technology.
The licensed technologies can be channelled to deliver “step change efficiency gains” for electric vehicles, wind turbines and other electricity generation, said the company.
"We are extremely excited to have completed the first major step in what we believe will add substantial long-term value for Hillcrest shareholders," Hillcrest CEO Don Currie said in a statement.
"With the definitive licensing agreement now executed, we intend to immediately develop and implement a business plan to present the disruptive PDi technologies to potential technology partners, several of which have already indicated interest. We look forward to and will continue to advise as developments happen, or material events occur," he added.
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