PetroAlgae sells one-year Egypt, Morocco master license for $4 million

In Florida, PetroALgae’s most recent SEC 8-K reflects a $4 million in licensing revenue from sale of a one-year master license for development of PetroAlgae projects, and sub-licenses, in Egypt and Morocco.

“PA LLC, a Delaware limited liability company that is PetroAlgae’s operating subsidiary, entered into a Master License Agreement with Congoo, as licensee (the “License Agreement”). Under the License Agreement, Congoo paid PA LLC an initial licensing fee of $4,000,000 for a non-exclusive royalty-bearing license to use PA LLC’s proprietary technology to construct and operate facilities for the growth and harvesting of organisms for the production of oil and biomass (”Units”) in Egypt and Morocco. Congoo is permitted to enter into sublicenses with prior written approval of PA LLC, provided any sublicensee agrees to be bound by the terms of the License Agreement. The license expires on December 31, 2010.

“PA LLC and Congoo also entered into an Option Agreement on December 24, 2009 pursuant to which Congoo is given the option to sell to PA LLC, for a purchase price of $2,000,000, exercisable between June 15, 1010 and January 31, 2011, the right to market and directly license its technology to certain potential customers identified by Congoo in connection with the License Agreement.”

In addition, PetroAlgae and Congoo formed a venture, Green Science Energy, in which Congoo holds a 70 percent interest. Green Science has subsequently purchased 357,143 shares of PetroAlgae stock for $8 per share, with a warrant to buy an equal number of additional shares at $15 per share.

Free Subscription to the Daily Biofuels Digest e-newsletter

Subscribe FREE to the world's most-widely read biofuels daily. Enter your email in the box below,

or click here to subscribe:

Entry Information