Sydney, Oct 20, 2005 (ABN Newswire) - The Board of Cardia Technologies Ltd ("Cardia") (ASX: CNN) is pleased to announce that the Company's wholly owned subsidiary Aquenox Pty Ltd ("Aquenox") has executed a Technology Franchisee Agreement ("TFA") with Jianghan Petroleum Machinery Plant ("JPMP"), a wholly owned subsidiary of the Sinopec Group.
The Agreement provides JPMP with the rights to the Aquenox patented water treatment technology in the Peoples Republic of China ("PRC") and, subject to meeting specific sales and revenue levels, to JPMP's operations in USA and Canada.
The JPMP rights are exclusive in the PRC for the oil production industry, the oil industry truck washdown facilities and Sinopec petrol station carwash facilities. They are non-exclusive for all the carwash facilities in China.
The new Agreement resulted from the due diligence process conducted by both parties following the completion of a Joint Venture Framework Agreement in September 2004. It provides for a review by both parties at the end of the first 12 months to consider whether any amendments should be made for the mutual benefit.
The Board is particularly pleased with the Franchisee Agreement as it enables Aquenox to retain 100% of its patented water treatment technology whilst having the flexibility to operate in other Chinese industries and globally.
Cardia Bioplastics Limited (ASX:CNN) is a global developer, manufacturer and marketer of sustainable resins derived from renewable resources. Its Biohybrid and compostable resins deliver packaging and plastics products with a lower carbon footprint.
Cardia Bioplastics Limited
