REG - HeiQ PLC - Files Breach of Exclusive Agreement Complaint

HeiqAnnouncement

10/10/2022 07:00

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RNS Number : 2597C  HeiQ PLC  10 October 2022

This announcement contains inside information

 

10 October 2022

 

HeiQ Plc

("HeiQ" or "the Company")

 

Files Breach of Exclusive Agreement Complaint against ICP

HeiQ Plc (LSE: HEIQ), an IP creator and established global brand in materials
and textile innovation which operates in high-growth markets, announces that
HeiQ Materials AG, Switzerland, a 100% subsidiary of HeiQ Plc has filed a
complaint in the United States District Court for the Western District Of
North Carolina, Charlotte Division, against ICP Industrial Inc, a division of
ICP Group ("ICP"), for breaching its Exclusive Agreement terms.

The Company intends to enforce the parties' Exclusive Agreement in full.

As previously announced on 19 March 2021, ICP signed an Exclusive Licence and
Chemicals Supply Agreement ("the Exclusive Agreement") to apply HeiQ Viroblock
for printing processes such as commercial print, food, beverage and pharma
packaging, in return for royalty payments to HeiQ. ICP has breached the
Exclusive Agreement by failing to pay royalties or minimum exclusivity fee
payments and failing to provide timely and accurate royalty reports.
Contractual minimum exclusivity fees for the contract term amount to USD $30
million in total.

HeiQ seeks an order that would require the defendant to comply
with its long-standing contractual obligations to HeiQ and given the
exclusive terms is asking for treble damages under North Carolina law.

HeiQ co-founder and CEO Carlo Centonze said:

"It is unfortunate that we must take this action against ICP to enforce our
agreement, but we cannot allow ICP to use our valuable intellectual property
without honouring the terms to which they have agreed.  We intend to enforce
it in full. Despite this claim, our Hygiene Technology's Coatings &
Polymers business unit continues to progress well. HeiQ recently entered into
an agreement with Touchguard International Ltd to acquire a patent portfolio,
which covers the use of antimicrobial overprint varnishes, for a consideration
of £1 million, providing HeiQ and its licensees with exclusive rights to use
antimicrobials in overprint varnishes in the UK and Europe. This enables HeiQ
to become the leading player in the European antimicrobial print market and
provides substantial growth opportunities."

 

For further information, please contact:

 

 HeiQ Plc                                                +41 56 250 68 50

 Carlo Centonze (CEO)
 Cenkos Securities plc (Joint Broker)                    +44 (0) 207 397 8900

 Stephen Keys / Callum Davidson
 SEC Newgate (Media Enquiries)                           +44 (0) 20 3757 6882

 Elisabeth Cowell / Axaule Shukanayeva / Molly Gretton   HeiQ@s (mailto:HeiQ@secnewgate.co.uk) ecnewgate (mailto:HeiQ@secnewgate.co.uk)
                                                         .co.uk (mailto:HeiQ@secnewgate.co.uk)

 

About HeiQ

HeiQ is focused on improving the lives of billions of people world-wide by
innovating the materials people use every day. HeiQ has strong IP which is at
the forefront of global technology in the $10 billion antimicrobial fabrics
market, $24 billion textile chemicals market, the $50 billion probiotics
market and the $150 billion man-made fibers market. It has also moved into the
medical device, healthcare and hygiene coatings markets, to help make
hospitals and healthcare environments more hygienic. HeiQ aims to deliver
growth for its shareholders through a combination of increased sales of its
core products and by entering additional lucrative markets through disruptive
innovations and M&A.

HeiQ has created some of the most effective, durable and high-performance
technologies in the market today, which cool, warm, dry, repel, purify, and
destroy viruses. Since 2005, HeiQ has developed over 200 technologies in
partnership with 300 major brands and it has a significant R&D pipeline
containing over 50 projects. The Company has won multiple awards and gained a
strong reputation for the ESG & sustainable downstream effect of its
innovations. HeiQ is the only company to have won the Swiss Technology award
twice. It has also won the Swiss Environmental award with an innovation that
saves energy and water consumption during the textile manufacturing process.

Led by an experienced leadership team, HeiQ researches new solutions for
partners, delivers scaled up manufacturing from its sites across the world and
helps partners market the product to end consumers - aiming for lab to
consumer in months.

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