Papyrus Australia Limited (ASX: PPY) is in the materials sector based in Australia. The company is the world’s first developer of a technology that helps to process the waste trunk of the banana palm and converts it into an alternative product for the products made from forest wood. This process uses renewable fibre source, which is also much more environment-friendly. The company is focused on licensing this technology to worthy entities that will set up banana fibre production factories and banana veneer.
On 3rd May 2019, the company announced that is has negotiated a contract with Egypt Banana Fibre Company (EBFC). Under the contract, Papyrus Australia will transfer half of its stake in Papyrus Egypt to EBFC and in consideration the signing of “exclusive for Egypt” IP Licensing Agreement.
Now the company is focused on technology development and licensing entity.
Highlights of the Egypt IP license Agreement
- The validity of the licence will be of five years, the time that the company will get to exploit the technology in Egypt along with a nonexclusive licence for the same term in the Middle East.
- The payment for the licence and royalty will be based on a percentage of sales, which will be made quarterly in arrears with the first payment due after the end of the June 2019 quarter.
- EBFC will facilitate the successful development and commercial application of the Licensed Intellectual Property.
- EBFC will also develop and market banana fibre products for the mutual benefit for both the parties.
- The agreement will also enable EBFC to optimise utilisation of the licensed IP for its commercial business and strategic objectives and exporting products outside of Egypt and operations in Egypt.
According to the financial arrangements of the agreement, the company expects its income stream to be in line with the expectations, had it remained in a joint venture relationship with EBFC, but without the associated financial risks.
March 2019 Quarterly Cash Flow Report
The company reported net cash outflow from the operating activities of A$24,000 with the only expense being incurred on administration and corporate costs. There was no indulgence in the investing activities for the quarter, and a total of A$5,000 has been received from proceeds from the share under financing activities.
At the end of the quarter, the company reported a net cash of A$12,000. The company also estimated the cash outflow of A$11,000 for the next month, where A$10,000 would be spent on administration and corporate costs.
Resignation of Director
On 5th April 2019, the company released a statement according to which, Mr Andrew Ford had retired as a Director of the company for personal reasons, and he was in this position since 2013.
The market capitalisation of the company is A$1.39 million. The 52-week high and low of the stock is A$0.023 and A$0.005, respectively. On 3rd May 2019, the stock closed the session at the highest level of the day at A$0.009 as compared to the previous closing of A$0.006 (on 1st May 2019). In the last one year, the stock has delivered a negative return of 40%, and the YTD return stands at negative 50%.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.