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Smoltek has the intention to sign a global exclusive license and services agreement for discrete and embedded capacitors with YAGEO Group. This would grant YAGEO a global, exclusive right to manufacture and sell capacitor products based on Smoltek's patent protected technology platform for ultra-thin carbon nanofiber capacitors (CNF-MIM).
Smoltek Semi and KEMET Electronics Corporation, a subsidiary of YAGEO Group intends to sign an agreement that would grant YAGEO Group exclusive right to manufacture and sell discrete and embedded capacitor products based on Smoltek’s patent protected technology platform for ultra-thin carbon nanofiber capacitors (CNF-MIM). Under the intended terms of the Agreement, Smoltek Semi would receive a royalty on industry market terms based on product sales, and Smoltek Semi would receive fees from KEMET for providing specific technical support services to KEMET for its contribution to the continued joint commercialization of CNF-MIM-based products.
During negotiations on the terms of the next step in the collaboration, Smoltek and YAGEO have identified distinct benefits of having YAGEO market and commercialize different capacitor products through its already established organization. This would facilitate a faster and more cost-effective way to bring CNF-MIM capacitors to market compared to the additional planning and investments needed to form a new Joint Venture entity, as was previously planned by the parties.
Furthermore, such an arrangement would allow YAGEO to more efficiently allocate resources to the collaboration with Smoltek as appropriate, including ongoing payment to Smoltek for specific technical work carried out during the continued joint commercialization and industrialization process, thus facilitating a faster road to market for CNF-MIM based products.
In the light of the above, the parties are now in negotiations to enter into a global exclusive license and services agreement for discrete and embedded capacitors. This agreement would grant YAGEO an exclusive global right to manufacture and sell CNF-MIM capacitors, while also allowing for Smoltek to receive payment for specific technical support services.
Although the detailed commercial terms of this agreement still is under negotiation, the parties have agreed on the following structure and outlined terms of this agreement:
Both Smoltek and YAGEO believe that the adjusted structure of its future collaboration, to be finally agreed upon during the first quarter of 2024.
Disclaimer: Although the parties are currently conducting the negotiations regarding the Agreement in good faith and with good hope of finalizing the Agreement, the above information shall not in any way be seen as a guarantee regarding the outcome and conclusions of the upcoming final negotiation phase of the Agreement or a guarantee that the Agreement will be entered into by the parties or that YEAGEO will make any investments in either Smoltek Semi or Smoltek.
Top image features Farzan Ghavanini, CTO at Smoltek and Philip Lessner, EVP of YAGEO.