OptiFreeze AB has signed a letter of intent with a leading multinational company defining their intentions of future cooperation to develop and apply the patented OptiCept technology for use in the production of plant propagation material. The ultimate purpose of the cooperation is to fully develop and commercialize the Optifreeze technology for improvement in plant propagation for the entire flower and plant industry. The first phase of development will focus on applications in the production of cuttings and young plants of ornamental crops.
The intention with the agreement is that the customer will buy a number of process lines from Optifreeze and install them at their farms. Together the two parties will develop the process to handle a wider variety of flowers. The new business model will in short be based on a capital sale from OptiFreeze of an Opticept plant and a royalty fee for each processed plant. This will ensure a continued inflow of revenues. The royalty fees from future sales from a third party will be shared between the two companies. In addition, Optifreeze will sell the OptiCap products to the users. Starting June 2018, the customer will monthly compensate Optifreeze for the concept development work going on in Lund.
OptiCept is a specific process that enhances quality and shelf life of cuttings and is expected to allow breakthrough opportunities and new logistic solutions within the entire flower and plant propagation industry.
The signing of this Letter of Intent was a logic step, following the very promising results in a joint research project that started in 2017. The discussions on the terms and conditions for an extensive cooperation agreement are already ongoing and are expected to be finalized by the end of the year.
“I am glad to announce the cooperation and partnership intention with a leading multinational company. OptiFlower has a great potential not only in flower industry, also in all plant industry. The customer will bring their knowledge, resources and experience to achieve OptiFreeze goals in a successful way.” says Eda Demir Westman, CEO of OptiFreeze.
Lund, September 6, 2018
Eda Demir Westman, CEO