- Wooboard Technologies has met all the conditions precedent required to execute the reseller and licence agreement with Slik Pro Corp.
- WOO will be paying the first of the three tranches owing to Slik of US$266,666.67 per tranche from its cash reserves.
- The development is a great step forward to unlock new opportunities for WOO’s product portfolio in the Latin American (LATAM) region.
One of the fast-growing SaaS solutions company, Wooboard Technologies Limited (ASX:WOO) has successfully executed the much awaited reseller and licence agreement with Slik Pro Corp after fulfilling all the conditions precedent. The company will pay the first of the three tranches owing to Slik of US$266,666.67 per tranche from its cash reserves.
This represents a great step forward to unlock new opportunities for WOO’s product portfolio in the Latin American (LATAM) region. WOO can make use of Slik's wide network of distribution and customer channels in LATAM for marketing its health and wellbeing modules.
WOO will continue to steer ahead in helping business develop highly productive workforce through its modules that inspire mental health and wellbeing, better employee performance and skill building.
Image Source: Company Announcement
Agreed conditions of the Licence Agreement
As per the signed Licence Agreement between WOO and Slik, there will be integration between the product suites of the two companies. They shall engage in opportunities for global cross-selling of their product range to big players in the business domain as well as government agencies.
Also, WOO will secure exclusive reseller rights to Slik’s products in the Asia-Pacific region. Similarly, Slik will now be able to resell WOO’s product range in LATAM.
Initially, the licence is valid for five years. However, it will get renewed automatically for an additional 30 years if the Licence Conditions Precedent are met two months prior to the end of the initial five years.
Image Source: © Terovesalainen | Megapixl.com
Details about the Licence Fee
Under the terms of the agreement, every financial year, WOO is required to pay Slik a royalty of 50% of the Net Profit (ex GST) earned from the sale of the Slik Pro platform. This will be according to the minimum re-sale prices as agreed between the parties.
Also, Slik will pay WOO a royalty of 50% of the Net Profit (ex GST) earned from the sale of the WOO product range, including the Sixty Application and the Sixty Application Adapted Module. This too will be according to the minimum re-sale prices as agreed between the parties.
WOO shares traded at AU$0.001 on 26 September 2022.