American Technologies Signs a Memorandum of Intent With Boronia
2 February 1999
American Technologies Group Signs a Memorandum of Intent With Boronia Ltd., Granting Exclusive Worldwide Rights to Bulk Fuel Catalyst
MONROVIA, Calif.--Feb. 2, 1999--Boronia to Pay American Technologies $2 Million Licensing Fee
American Technologies Group, Inc. (OTC BB: ATEG), announced today that it has signed a memorandum of intent with Boronia, Ltd., to grant Boronia exclusive worldwide rights to manufacture and distribute American Technologies' bulk fuel catalyst.
Under terms of the memorandum, Boronia will pay American Technologies an advance of $250,000 during a maximum 60-day period for Boronia to finalize its due diligence, during which time American Technologies will disclose to Boronia all of its existing relationships and provide Boronia with the results of all tests that have been done on the bulk fuel catalyst. Boronia has committed to pay ATG a total of $2 million for the licensing rights to the catalyst. The balance of the licensing fee of $2 million will be paid by Boronia in installments prior to July 31, 1999.
Upon execution of a definitive agreement, Boronia will have a six-month test period to launch a successful market introduction of the bulk fuel catalyst in the territory or country of its choice. If Boronia buys at least $10 million worth of the catalyst in the 12 months following the six-month test period, it will have fulfilled its initial obligation to American Technologies. American Technologies will be the sole and exclusive manufacturer of the catalyst. The memorandum also provides that if Boronia sells in excess of $100,000,000 of the catalyst within two years of signing a definitive agreement, it will receive a $10,000,000 bonus payable in cash or American Technologies common stock valued at 25 percent below market value, at Boronia's option.
Lawrence J. Brady, chairman and CEO of American Technologies, commented, "American Technologies' management sees tremendous potential for its relationship with Boronia. We believe that Boronia can greatly accelerate American Technologies' ability to successfully market the bulk fuel catalyst worldwide and significantly help increase shareholder value. Boronia is a very well established company with significant marketing capabilities and a highly respected international presence. We look forward to developing our relationship with them."
Boronia is a multinational, London-based buyer and seller of bulk fuels in Europe, the U.S. and the Middle East. The company and its principals have existing relationships with a number of international oil producers and refiners, including Aramco and Texaco.
American Technologies is an advanced science and technology company engaged in the development, commercialization and sale of products and systems using its patented and proprietary technologies. Its core technologies are the IE (TM) Crystals Technology, Vacuum Distillation Technology and a high-energy particle beam. These technologies have numerous applications in the nuclear, energy, medical, chemical, mining, oil, personal and home care industries. The company also sells The Force(R), an environmentally safe automotive combustion product based on its IE (TM) Crystals Technology used to improve fuel economy and, over time, reduce carbon deposits.
Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include activity levels in the securities markets and other risk factors disclosed in the company's reports the Securities and Exchange Commission, including its Form 10-QSB and Form 10-KSB on file with the SEC.