Amiad Water Systems Ltd Licensing agreement with Dow Global Technologies (2671X)
November 22 2017 - 9:55AM
UK Regulatory
TIDMAFS
RNS Number : 2671X
Amiad Water Systems Ltd
22 November 2017
22 November 2017
Amiad Water Systems Ltd.
("Amiad" or the "Company")
Licensing Agreement with Dow Global Technologies
Expansion of product range with TEQUATIC(TM) PLUS Filter
Amiad (AIM: AFS), a leading global producer of water treatment
and filtration solutions, announces that it has entered into a
Patent and Technology License Agreement (the "Licence Agreement")
with Dow Global Technologies LLC ("Dow Global Technologies") under
which Amiad has been granted an exclusive royalty-bearing licence
to use and sell the TEQUATIC(TM) PLUS Filter. The TEQUATIC(TM) PLUS
Filter, which delivers a consistent level of solids removal from
difficult-to-treat, highly loaded water, will expand Amiad's
product range to include a synergistic technology that offers a
unique solution for key markets in the oil & gas and industrial
segments.
The TEQUATIC(TM) PLUS Filter was manufactured and sold by Clean
Filtration Technologies, a subsidiary of Dow Global Technologies,
from its operations in Menlo Park, California, to customers
primarily in the US. Clean Filtration Technologies will now cease
the manufacture and sale of the solution, and Amiad will take over
new product manufacturing and support to the existing
customers.
The Licence Agreement, under which Amiad will pay Dow Global
Technologies a fixed percentage of 3.75% of future product
revenues, is in line with the Company's strategic plan, as stated
in the interim results announcement, to grow via complementary
product additions as well as focus on the North American market.
The Company believes the future potential of the product is
attractive and that the key benefits for Amiad are that it:
-- Enhances Amiad's product portfolio with the addition of a new
technology that offers a unique solution for key target markets
such as oil & gas
-- Generates cross-selling opportunities for the Company's
existing products as it enables Amiad to move up the value chain by
providing a solution for another stage in the treatment cycle
-- Potential to contribute to Amiad revenue for both new
products and consumables. Amiad is targeting sales of $2-3m p.a. in
the short term, and anticipates achieving break even during the
first one to two years and profitability from the third year
-- Strengthens Amiad's customer base in the US in the oil &
gas and industrial segments, and provides an opportunity to combine
Amiad products with the new TEQUATIC(TM) PLUS products
-- Establishes a relationship with Dow Water & Process
Solutions, which the Company believes offers potential
opportunities going forward
The TEQUATIC(TM) PLUS Filter is specially designed to treat
highly loaded water containing elements such as fats, oil, grease
and fibre, which is particularly prevalent in industries such as
oil & gas and food & beverage. It combines in a single
device the power of continuously cleaning, cross-flow filtration
with forced settling and solids collection. The unique, patented
design delivers the highest possible flow and maximum solids
separation without constant filter plugging or forming a filter
cake layer. As with Amiad's existing portfolio, the TEQUATIC(TM)
PLUS Filter is automatic, self-cleaning, chemical-free and
operationally efficient with a compact footprint.
Amiad has also purchased the TEQUATIC(TM) PLUS Filter
manufacturing equipment and inventory from Clean Filtration
Technologies. Amiad intends to install the manufacturing equipment
as an additional production line at its US headquarters in
Mooresville, North Carolina, which is expected to occur during
December. The Company will hire a small number of employees,
currently employed by Clean Filtration Technologies in engineering,
sales and support functions, to facilitate the transition and
ensure seamless support for the existing TEQUATIC(TM) PLUS Filter
customers. The Company intends to initially focus the sales efforts
on the North American market, but expects this to be expanded to
Amiad's other global markets in the future.
Dori Ivzori, Chief Executive Officer of Amiad, commented: "We
are delighted to have signed this agreement with Dow Global
Technologies to become the exclusive global provider of the
TEQUATIC(TM) PLUS Filter. This technology expands our product
portfolio by adding a unique solution for high-solids filtration
for difficult-to-treat water in industries such as oil & gas,
which is a strategic focus for Amiad. It also strengthens our offer
and customer base in our key market of North America. We welcome
the existing Clean Filtration Technologies customers and employees
to Amiad, and we look forward to continuing to develop this
fantastic technology."
Enquiries
Amiad Water Systems Ltd.
-------------------------------- -----------------
Dori Ivzori, Chief Executive
Officer
Irit Ben-Dov, Chief Financial
Officer +972 4 690 9500
-------------------------------- -----------------
Stifel Nicolaus Europe
Ltd.
-------------------------------- -----------------
Stewart Wallace, Ben
Maddison +44 20 7710 7600
-------------------------------- -----------------
Luther Pendragon Ltd.
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Harry Chathli, Claire
Norbury +44 20 7618 9100
-------------------------------- -----------------
About Amiad
Amiad Water Systems (AIM: AFS) is a leading global producer of
automatic, self-cleaning water treatment and filtration products
and systems. Through its engineering skills and ability to
innovate, Amiad provides cost-effective "green" solutions for the
industrial, municipal, irrigation, oil & gas and ballast water
markets. In these segments its patented products are being
integrated into the core of systems for filtration and water
treatment, micro irrigation and membrane protection, wastewater and
potable water treatment, cooling systems and sea water
filtration.
Headquartered in Israel, Amiad provides these solutions through
nine subsidiaries and a comprehensive network of over 170
distributors to customers in more than 80 countries.
For additional information or product details, please visit
www.amiad.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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