Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Keratec shows IP transfers can create value

Small fish Keratec shows IP transfers can create value

Dec. 23 – Keratec, a company seeking to commercialise proteins extracted from wool, has agreed to cooperate with a U.S. company with similar products, Keraplast Technologies.

The New Zealand company, a subsidiary of Wool Equities, will initially get a 10% to 30% share of any ensuing sales by Keraplast under an exit strategy. Longer term, Keratec will relinquish its interests to the American company.

Keratec and Keraplast were unable to agree on valuations under an earlier proposal for a joint venture that could ramp up sales of high-value proteins. The two companies had a cooperation agreement to try to safeguard the value of their intellectual property. Wool Equities also failed to secure a licensing agreement for its IP.

As part of the deal, Keratec’s chief science officer Rob Kelly will provide his services via his own company. After the transaction, Keratec will write off biomedical IP of about NZ$600,000 while parent Wool Equities will write of goodwill in Keratec of NZ$1.3 million.

The all-up impact is a NZ$1.9 million non-cash expense for Wool Equities of NZ$1.9 million and remaining Keratec IP still owned by the company of NZ$750,000. In turn it gets potential sales, up to a point of NZ$8 million, when the percentage of its share halves.

The company has been downsizing after the sale of its Covita and Paraco units to Crown Research Institute AgResearch. A spokesman for the company couldn’t immediately be reached.

Wool Equities last traded at 26 cents on Oct. 16.



© Scoop Media

Business Headlines | Sci-Tech Headlines


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>


Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>


Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>