Thursday, January 7, 2010

New Licensing Model for Patented Extraction Technology

As the SkunK said on the day of the deal, the big news about the Global contract was the "new form of technology transfer" and the right of the Ethanol plant to "own and control the equipment and the related building.".

If the industry responds, it could solve the financing problem and make Greenshift a cash cow.
The SkunK believes the patents give Greenshift much more flexibility. Before the patents they had to be very careful about who had access to the equipment. With the security of the patents they can now directly license the COES and turn possession over to the plants. This frees then of the requirement to raise huge sums of cash in a cash strapped economy. It also may put them into the catbird's seat to generate corn oil for a feedstock starved biodiesel industry!


For those who wonder how the plant will finance - it appears Greenshift has also taken care of that.
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Optional Construction Financing
Qualified producers have the ability to take advantage of direct financing that GreenShift has arranged for its licensees for the construction and installation of extraction facilities based on GreenShift’s patented technologies.
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NEW YORK--(BUSINESS WIRE)--GreenShift Corporation (OTC Bulletin Board: GERS - News) today announced a significant modification to its market offering for its recently-patented corn oil extraction technologies.

Under GreenShift’s new licensing option, authorized licensees will be granted the right to directly build, own and operate the equipment they need to use GreenShift’s patented extraction technologies in return for an ongoing royalty payment equal to 20% of the licensee’s corn oil sales. This royalty structure is derived in part from the standard conventions used by thousands of companies in many different industries, including the auto, consumer products, energy, food and manufacturing sectors.

Integration of GreenShift’s patented Method I corn oil extraction technologies into a 100,000,000 gallon per year ethanol production facility will result in the production of between 1,500,000 and 3,000,000 gallons (11,400,000 to 22,800,000 pounds) per year of corn oil, and about $2,300,000 to about $4,500,000 in additional net income to the ethanol producer at the current market price of corn oil (not including the impact of energy savings) – net of GreenShift’s 20% royalty.

At the lower end of this range, an ethanol producer’s investment in an extraction facility can pay for itself within less than about 18 months based on the current market price of corn oil.

Rest of Article here:
http://finance.yahoo.com/news/GreenShift-Announces-New-bw-2756019.html?x=0&.v=1
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SkunK

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