Quantum Materials Corp and Rice University
In an article this past week we discussed a company called Quantum Materials Corp (OTCMKTS:QTMM) using the most recent available information from the SEC filings for the Company available, a March 31 2013 10-Q. Three days after this article was published, QTMM filed an 8-K with the SEC to define amendments for their two agreements with Rice University; one agreement with QTMM and one with QTMM subsidiary, Solterra. Given that the SEC requires a company to file an 8-K within 4 business days of a significant material event occurring, we can only assume that this amendment was agreed upon in the past four business days. Both agreements refer to the below intellectual property:
The Solterra agreement has two amendments; the effective dates of the royalty structure for the sale of photovoltaic cells by Solterra and the annual minimum royalties for the same. The first amendment of the royalty structure can be seen below:
The second amendment regarding annual minimum royalties states that the first amount due is $100,000 on January 1 2016 with amounts each year increasing thereafter. From January 1 2019 and every year thereafter the annual minimum royalty amount is fixed at $53,153,600.
Similar to the amendment in the Solterra agreement, the QTMM agreement has an amendment that also defines a new structure for minimum annual royalty payments as seen below:
Solterra and QTMM Milestones
According to the agreements, both Solterra and QTMM have very clearly stated obligations to fulfill which are referred to as “company diligence milestones”. The most near term obligation is to establish quantum dot production pilot plant capable of producing 1000 g/week and to offer for sale a Rice Licensed Product for use in medical applications on or before August 15, 2014. The Companies are expected to offer for sale solar cells incorporating a Rice Licensed Product on or before January 30, 2015 and to start up a full scale quantum dot production plant by February 15, 2015. Further objectives include bringing a 10 MW capacity solar cell pilot production line on-stream by April 28,2015 and offering for sale a Rice Licensed Product for use in electronic applications on or before August 15, 2015.
Rice University is a pioneer in the area of nanotechnology research having established the first nanotechnology center in the US. Their research accomplishments in the area of quantum dots are cited in many academic papers and news articles. With the Rice agreements now amended, QTMM can focus on achieving the very clear set of objectives stated for the coming years.
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