NEXT Biometrics Group ASA - Cancellation of royalty agreement
Reference is made to the announcement of today made by NEXT Biometrics Group ASA ("NEXT" or the "Company") regarding a proposed private placement. NEXT and Ngoc Minh Dinh have agreed to terminate the royalty payments to be made under the agreement of 8 May 2008 regarding the Company's acquisition of the patent and know-how described as the Active Thermal Sensing principle.
The agreement was initially designed to ensure Ngoc Minh Dinh's a minimum payment for development of the technology regardless of his ownership in the Company. Ngoc Minh Dinh was thus entitled to a royalty equal to 5% of the Company's gross margin. Based on the improved cash position of the Company resulting from the private placement, the Company and Ngoc Minh Dinh have agreed that it is in the best interest of both parties to terminate the annual payment under the agreement against a one time payment of NOK 9,500,000. The agreement is conditional upon completion of the private placement.
NEXT 's CEO Tore Etholm-Idsøe comments: On behalf of the Company and the shareholders I will thank Dinh for reaching today's agreement with the Company. The royalty agreement was signed in a different environment and for purposes that are no longer deemed relevant.
ABOUT NEXT Biometrics:
Enabled by its patented NEXT Active Thermal principle, NEXT Biometrics (www.NextBiometrics.com) offers high quality area fingerprint sensors at a fraction of the prices of comparable competitors. A wide range of product formats including Smartphones, Tablets, PC's, Doors, Time registration systems, Wearables, Payment terminals, Flashdrives, USB-tokens, Key fobs and many more are targeted.
NEXT BIOMETRICS GROUP ASA is a publicly listed company headquartered in Oslo, Norway and with sales, support and development subsidiaries in Seattle, Silicon Valley, Taipei, Prague and Shanghai.
Media and Investor contacts for NEXT Biometrics: Tore Etholm-Idsøe, CEO, Tore.Idsoe@NEXTbiometrics.com and Knut Stalen, CFO, Knut.Stalen@NEXTbiometrics.com.