TyraTech Inc (LON:TYR LON:TYRU) has received a big endorsement of its household pest control technology through a licensing deal with a major global consumer company.
The company's intellectual property and household pest knowledge is currently licensed to its US joint venture Envance, but this will now be sub-licensed to the global group.
Tyratech’s range of personal care products, including its Vamousse head lice treatments and Guardian range of insect repellents are not included, nor is its range of animal health products.
Bruno Jactel, chief executive, said it was an excellent endorsement of TyraTech’s technology by one of the largest consumer products companies in the world.
“Although the agreement is not expected to be transformational in terms of profitability, it provides us with further confidence in the significant value of our IP and knowhow and the potential and value of our Animal Health and Personal Care portfolios."
Jactel added it will be a benefit in three ways: First, through the sharing of technology, joint ownership and access to any new intellectual property developed; secondly through a small share of the profit Envance makes and an additional upfront cash fee of US$500,000.
Finally, TyraTech will receive a fee for research and development services in line with the terms of its existing agreement with Envance, a joint venture between American Vanguard Corporation (NYSE:AVD 86.67%) and TyraTech 13.33%. AMVAC is also a 15.15% shareholder in TyraTech.