Progressive Planet Solutions Inc (TSX-V:PLAN) announced that it has signed a royalty agreement with an Ontario-based pet products manufacturer for its cat litter formulations.
The company said it will continue to provide its approved formulas related to the sale of traditional cat litter products and in return will receive a royalty equal to 0.75% of the total sales to a large Canadian retailer.
The agreement was signed on January 1, 2024, but was backdated for royalty payments on applicable revenues from May 1, 2023.
Meanwhile, the company announced that it has entered into an equipment purchase agreement with CarbonIP Technologies for its unused 1998 Coreco 1225 thermal processing kiln for $70,000.
CarbonIP is developing lignin-based hard carbon (HC) to be used in the anodes of lithium-ion batteries.
Progressive Planet will receive a 2% royalty on any sales that come as a result of CarbonIP successfully commercializing its HC technology.
CEO Steve Harpur said that the company’s strategy is to create intellectual property (IP) and monetize it through product sales and royalties, with royalties anticipated to be a significant revenue driver.
"Collecting our first royalties on existing IP for cat litter formulations is an important milestone to complement potential royalties for developing technologies such as PozGlass 100G and CarbonIP's renewable hard carbon technology,” Harpur said.
“Our company continues to pursue opportunities to receive royalties on other existing IP, such as patented Activated Barn Fresh.”
CarbonIP CEO Dave Richardson, who also holds an approximately 25% stake in Progressive Planet, added: "The purchase of this thermal processing kiln equipment from Progressive Planet will dramatically increase our capacity to process lignin as we scale up our pilot plant production.”
Kamloops, British Columbia-based Progressive Planet is a Cleantech and manufacturing company with proven product lines.