OBJ LIMITED (ASX: OBJ) will trade significantly higher today after entering into a suite of agreements with The Procter and Gamble Company (NYSE: PG) to commercialise OBJ's magnetic micro-array technology.
The technology utilises synchronized magnetic fields and microvibrational energy to increase the rate of ingredient penetration into the skin or bloodstream for cosmetic and medicinal formulations.
Procter and Gamble is the world’s largest consumer products company, with annual turnover in excess of US$83 billion and a market cap of US$220 billion.
The deal involves multi-product development and an initial licensing agreement that grants P&G world-wide exclusive access to OBJ’s nonpowered micro-array technology in specific consumer product categories.
An over-arching multi-product and multi-category PDA, key terms of the master License that will apply to all new products developed under the PDA, and work plans for the development of the first three products are included.
The agreement package includes covers 7 of P&G’s major product categories, and minimum funding levels by P&G are required to maintain exclusivity rights in certain product categories.
OBJ retains all rights in other product categories and in its other technologies, which it is free to License
to other companies.
While the PDA with P&G is currently limited to OBJ’s nonpowered magnetic micro-array technology, discussions to potentially expand P&G’s access to OBJ’s other technologies are currently under discussion.
Four additional product development programs have been proposed by P&G and are being evaluated by OBJ.
The PDA and associated work plans also provide for the payment of Licensing fees in relation to any final products developed over and above the minimum funding requirements.
This is a very significant milestone for OBJ, capped at $57 million, and will likely spark a sustained market re-rating.
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