Applied Nanotech (APNT.OB) Establishes Strategic Partnership to Commercialize Technologies in China

QualityStocks would like to highlight Applied Nanotech Holdings, Inc. (OTCBB: APNT), a premier research and commercialization organization focused on solving problems at the molecular level. Applied Nanotech has created an extensive patent portfolio and its business model is focused on licensing its patents and technology to partners that will manufacture, distribute, and commercialize products using its technology.

In the company’s news yesterday,

Applied Nanotech Holdings announced it has entered into a strategic agreement with Sichuan Anxian Yinhe Construction and Chemical Group Co. Ltd (YHCC).

Per the agreement, YHCC obtains the exclusive right to license and commercialize two of APNT’s technologies through August 31, 2011, and can be extended upon mutual agreement of both companies.

Any licenses signed will be exclusive in China and other specific parts of Asia, and nonexclusive for the rest of the world. In exchange, YHCC is providing APNT with a deposit for this exclusive right, which will be applied against the upfront payment on the two licenses, if and when completed.

“We are thrilled to have found a partner like YHCC in China,” Doug Baker, CEO of APNT stated in the press release. “Their commercialization expertise is a perfect match with our technology and we strongly believe that we will receive substantial financial and strategic benefits from having YHCC as a long-term partner. We are pleased that they have expressed an interest in investing in APNT and being on our board of directors, which demonstrates their intention of being a long-term shareholder, and recognition of the significant value a long-term relationship can create.”

In addition to the licensing agreement, the companies announced that YHCC is making a strategic investment of $2.5 million in APNT, for which it will receive 6,578,948 shares of restricted common stock and a board seat on APNT’s board of directors.

For more than 40 years, YHCC operated as a diversified construction, manufacturing and chemical company, successfully manufacturing and commercializing various products. YHCC is now China’s largest supplier of chromium salts, including Sodium Dichromate, Chromic Acid, Chrome Sulfate, Chromic oxide, and others.

“Along with their strong interest in licensing our technology, YHCC’s strategic investment clearly demonstrates both their commitment and confidence in our technologies. With YHCC, we believe we have found the right partner in China with the financial resources and know-how to help us commercialize our technology,” Dr. Zvi Yaniv, CEO of APNT stated.

Xianrong LI, chairman and CEO of YHCC said that after evaluating different partnership options, the company chose APNT because of the potential of the integration of both companies’ technologies.

“After searching top R&D companies around the world, we made the careful decision to partner with APNT,” LI stated. “We are confident that our skills in commercialization, combined with APNT’s technologies, give us the right combination of talents to deliver significant long-term value to both our organizations.”

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