Puration Closes Deal On Canadian License & Manufacturing Rights
Apr 11, 2012 (Close-Up Media via COMTEX) --
Puration, a Dallas-based water-purification products company, announced the Company has sold the manufacturing and distribution rights for all of Canada for the Company's flagship product line of personal water filter bottles to privately held GTTB Limited of Toronto, Ontario, Canada.
In a release, the Company said that the terms of the Agreement provide for a US$500,000 initial license fee with a US$50,000 advance payment already received, with US$450,000 to be paid monthly over an 18 month period, plus a royalty of ten percent of all gross revenues in Canada. In addition, the Agreement provides for minimum sales volumes from GTTB Limited in the Canadian Territory in the amount of $3,250,000 in year one, $6,500,000 in year two, and $16,500,000 per year thereafter. GTTB will bear all costs for the production and distribution of the products to the specifications of Puration.
"The Canadian Market is very environmentally aware," stated Brian Shibley, President of GTTB, citing recent news articles that several Universities are going 'Bottle Water Free.' "Puration's products provide both environmental and economical advantages over bottled water. We at GTTB are very pleased to be selected to represent Puration's products in Canada."
Puration's "Sports Bottle" produces up to 400 bottles of great-tasting filtered water on-the-go from each replaceable filter, and may be re-filled at any water faucet or fountain with ordinary tap water. The bottles are also made from recycled, biodegradable, BPA-free, food-grade plastic.
Puration CEO Don Harris stated, "Canada is a great first international market for our products, and we believe that this Agreement validates our expansion strategy as we continue to negotiate additional license rights in other foreign markets. We estimate the Canadian market to be as big as California and Texas combined, with the advantage of heightened eco and carbon footprint awareness compared to most other countries. We expect this to precipitate a more rapid product acceptance and market penetration of our 'Sports Bottle' than other less eco-conscious global demographics."
Puration designs, develops, manufactures and distributes a number of water purification products.
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