Here you go Junebug, it is a lot of reading, but the following lays out some of what can be expect and why North Cal may only be interested in a part of HIMR's future.
BLAINE, Wash., July 30, 2012 (GLOBE NEWSWIRE) -- Hollund Industrial Marine, Inc. (Pink Sheets:HIMR) ("Hollund" or the "Company") announced today that the company expects by Friday, August 2nd, 2012, to have completed negotiations concerning the company's acquisition of an exclusive license for the patented underwater logging technology.
"For the past few weeks, we've been negotiating with the technology owner to secure a multi-year exclusive agreement for the rights to market and operate the patented underwater timber harvesting robotic system," stated Peter Meier, President of Hollund Industrial. "It is expected that we will execute a Letter of Intent by the close of this business week -- with the formal agreement to quickly follow."
People close to the company indicated that talks concerning the exclusive license were extended due to positive discussions around Hollund having the right to also manage concessions outside of timber harvesting. Given the capabilities of the underwater robotic system, the technology also has the capacity to dredge underwater, as an example. This affords Hollund the ability to secure concessions -- for example -- from gold mining companies requiring underwater dredging services to extract gold from the sea floor.
"We are laser focused at this time on securing underwater tree harvesting concessions above all else," continued Meier. "However, having the ability to secure other concession types for all underwater resource endeavors keeps the technology active and relevant. Our right to operate this technology in its fullest capacity greatly strengthens our position within the mining and underwater resource space; allowing for additional profit centers."
Management indicates an exclusive license agreement will allow Hollund to be the sole marketing group and operations manager for the technology across a number of disciplines. This includes underwater gold mine dredging, spill response clean up, disaster recovery and environmental remediation. Hollund will likely create a limited partnership arrangement with the technology owner to easily manage revenue expectations. HIMR will also likely maintain the exclusive license initially for a 3 to 5 year period with automatic renewal options should milestones be met.
Overall, securing the exclusive technology license within the next 5 days will move Hollund closer to solidifying an arrangement currently being strategized with North Cal Wood Products, Inc. This is where the value of the exclusive technology license is really monetized Meier suggested, concluding, "With over 40,000 large dam reservoirs globally, the volume of inundated forest and the harvestable timber is immeasurable. So having a relationship with one of the nation's premier reclaimed woods company and distribution sources, only helps to ensure not only will Hollund have a secured distribution outlet for our harvested timber, but our future profitability will likely be greatly enhanced due to 'premium' distribution revenue possibilities."
BLAINE, Wash., Aug. 6, 2012 (GLOBE NEWSWIRE) -- Hollund Industrial Marine, Inc. (Pink Sheets:HIMR) ("Hollund" or the "Company") announced today that the company has executed a MOU (Memorandum of Understanding) formalizing Hollund's exclusive right to manage and operate a patented underwater robotic resource technology.
Part of Hollund's pursuit of this license was to enhance the potential to acquire concessions the South American Project Development Team cited as a $2 Billion Dollar opportunity in Brazil. Having now secured the technology, Hollund is well positioned to benefit from planed future developments targeted at the Tucurui and Balbina dam reservoirs.
"Now that we have secured an exclusive license agreement, we have the ability to market and operate the technology across a number of disciplines," stated Peter Meier, President of Hollund Industrial Marine. "This includes underwater gold mine dredging, spill response clean up, disaster recovery and environmental remediation. However, to be clear, we are completely focused on our core business model; which is to secure underwater tree harvesting concessions."
It is expected that a formalized licensing agreement will be executed inside of September 2012. However, the MOU is binding for a term of 10 years. The MOU grants Hollund the full rights to begin selling, managing and operating the underwater robotic resource technology exclusively and immediately.
Management suggests the MOU provides a much more lucrative arrangement for Hollund. "Now, instead of receiving a finder's fee for procuring underwater forestry concessions, we can share in the greater portion of a concession's revenue," continued Meier. "Revenue generated from a single log can range between $750 and $2,000. Value is based on the region of the world where the underwater timber is harvested as well as the actual tree species and size. This patented technology will enable us to harvest inundated forests at depths of 120ft; giving Hollund an advantage in extracting larger trees and greater volumes."
People close to the company suggest the real excitement resides in 'what's next' for Hollund as a result of the exclusivity. That 'next' is the potential relationship expected to now be furthered with North Cal (premier reclaimed woods company) based on this license.
Securing this license appears to have been a prerequisite for North Cal to continue forward with Hollund in a strategic partnership.
A strategic arrangement with North Cal at this juncture could accelerate Hollund's growth and substantially evolve the business model.
Should Hollund secure a strategic relationship with one of the country's most prominent woods product and distribution sources, the company could ensure a dedicated global sales outlet for its timber. The company's revenue potential would also be positively impacted by this relationship quite significantly. Utilizing the support of North Cal, Hollund could become a beacon to the various global 'Go Green' initiatives.
Having now secured this exclusive license, management suggests that the stage has been set for Hollund and North Cal to seek a formal arrangement. Sources suggest that at the very least, an MOU or LOI could be completed within the month.
