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YHCC Makes Strategic Investment in Applied Nanotech
AUSTIN, Texas, Feb. 17, 2011 (GLOBE NEWSWIRE) -- Applied Nanotech Holdings, Inc. (OTCBB:APNT) is pleased to announce that it has formed a strategic relationship with Sichuan Anxian Yinhe Construction and Chemical Group Co., Ltd ("YHCC"). The companies signed a letter of intent, giving YHCC the exclusive right to license and commercialize two of APNT's technologies. Any licenses signed will be exclusive in China and other specific parts of Asia, and nonexclusive for the rest of the world. This right is valid until August 31, 2011, and can be extended further upon mutual agreement of the parties. YHCC is providing APNT with a deposit, for this exclusive right, which will be applied against the upfront payment on the two licenses, if and when completed.
YHCC has expressed a strong interest in licensing additional technologies from APNT, after successful conclusion of the first two, with the ultimate goal of commercializing or representing all APNT technologies in China.
In addition to the letter of intent, YHCC is making a strategic investment of $2.5 million in APNT, for which it will receive 6,578,948 shares of restricted common stock and a board seat on APNT's Board of Directors. Terms were agreed upon in January 2011 with final documents signed on February 13, 2011 in Mianyang, China. The share price of $0.38 was based on the market price of APNT's common stock at the time the terms of the agreement were reached.
"Along with their strong interest in licensing our technology, YHCC's strategic investment clearly demonstrates both their commitment and confidence in our technologies. With YHCC, we believe we have found the right partner in China with the financial resources and know-how to help us commercialize our technology," commented Dr. Zvi Yaniv, CEO of Applied Nanotech, Inc.