Lomiko Metals Inc. and its 100% owned subsidiary Lomiko Technologies Inc. are pleased to announce an agreement to license from Megahertz Power Systems Ltd. rights to manufacture and sell three (3) power converter system designs, acquire a pending supply contract with a Canadian LED system integrator and support the research and development of new products.
"The Power Converter Market is a multi-billion dollar market. With the increasing demand for energy-efficient electronic devices, the advent of re-chargeable batteries and the new market for quick-charge supercapacitors, Lomiko has the opportunity to move into a growing market with a profitable business model.", stated A. Paul Gill, CEO.
Lomiko will establish cash-flow under the current Customer Contract within six months which is based on proven and in-demand devices designed by MegaHertz. The creation of an e-commerce site in three to four (3-4) months will increase the customer base for the Licensed Power Systems over the estimated five (5) year product cycle. In the long term, Lomiko and MegaHertz will work on innovative new designs that power products using graphite and graphene based devices to dramatically raise operating efficiencies and help reduce the energy waste for the Electronic equipment, Energy Storage and Automotive Industries worldwide.
Lomiko Metals Inc. has been involved in the exploration and development of graphite assets in Quebec since 2012. After a February 11, 2013 Strategic Alliance with Graphene Labs, Lomiko Technologies Inc. was formed in May, 2014 in order to become involved in the end uses of graphite and graphene. On December 4, 2013, Lomiko reported on a successful conclusion to Phase I of its Graphene Supercapacitor Project which involved Graphene Labs and Stony Brook University. Currently, Lomiko is working with Graphene Labs to launch Phase II of the Graphene Supercapacitor Project and will announce details shortly. A power converter designed to charge a graphene supercapacitor within minutes is one long term design goal of the MegaHertz deal.
Assignment of Customer Contract and Initial Funding
Megahertz has agreed to assign and transfer the pending revenue-generating Customer Contract for an existing OEM 120VAC 60 Watt LED Driver design (the "Custom LED Driver") with the LED Customer. Megahertz shall grant non-exclusive licenses to Lomiko to manufacture and sell the following three power converter system designs as the Licensed Power Supplies:
- A custom OEM 60W 120V OEM Led driver solely for the existing LED Customer ("Custom LED Driver" - the design of which is owned by the LED Customer);
- A Type AB in-wall AC receptacle with USB ports for recharging laptops, smartphones and tablets ("AB-USB6 Receptacle") for e-commerce sales;
- A 60W LED driver product ("LED90+ Driver") for online e-commerce sales.
- Lomiko will pay Megahertz a 15% royalty on Lomiko's net sales of Licensed Power Supplies, (the "Royalty").
Lomiko shall advance the sum of Two Hundred Fifty Thousand Canadian Dollars (Cdn. $250,000) (the "Start-up Funds") in order to:
- Organize and set up contract manufacturing of Licensed Power Supplies;
- Develop an e-commerce web-site for sales of certain Licensed Power Supplies;
- Establish a local office in support of Lomiko's sales of Licensed Power Supplies;
- Manage initial contract manufacturing, sales, customer relations, general business administration and technical support for customers and contract manufacturers ("Project Management Services") for the initial year of operations.