ERT Signs License Agreement

Environmental Recycling Technologies announced that its licensee, 2k Manufacturing Ltd. has signed a consolidated Master Flat Sheet license extending the rights of their existing flat sheet license to cover throughout the world. This follows an assessment of their business model whereby 2k now wants to take full advantage of the value of the 'Ecosheet' brand.

2k will pay ERT £2 million in installments over the next three years by way of license fees with credit being given for the sums already paid for licenses already granted. The license provides that the existing minimum royalties for Europe will continue to be supplemented by minimum royalties for the rest of the world.

Annual royalty payments based on 2k's, and their sub-licensees, actual production will provide ongoing revenue for ERT. As part of the consideration, 2k has also released back to ERT the rights to a General Construction license, thus enabling ERT to re-market the products in the field of general construction.

“We are delighted with the significant progress that 2k has made in the development of the Ecosheet portfolio and fully support 2k's decision to roll out that brand and its associated products on a worldwide basis,” said Roger Baynham, managing director.

“It has become increasingly apparent that brand awareness will be a major factor in our development which has led us (with the help of our partners) to the decision that we must accelerate our international roll-out. ERT has been very supportive of our plans and as momentum increases we look forward to working even more closely with ERT,” said Omer Kutluoglu, CEO of 2k.