CARLSBAD, Calif., Aug. 28, 2018 /PRNewswire/ -- OPTEC International, Inc., (OTC: OPTI) today announced the Company has signed a royalty contract for revenues exceeding $10M over the next 3 years.
On June 4, 2018, OPTEC International, Inc. (Hereafter the Company) acquired the Exclusive International License (excluding North America, Canada, Mexico and USA) for the OPTEC™ Fuel Maximizer product line from Optimized Fuel Technologies. Subsequently, on June 20, 2018, OPTEC International, Inc. additionally acquired the Exclusive North America License for the OPTEC™ Fuel Maximizer.
The information was disclosed in an 8-k dated June 22, 2018.
On August 8, 2018, Optimized Fuel Technologies entered into a contract with a nationwide automotive distribution company that desired to purchase the OPTEC™ Fuel Maximizer on a manufacturer direct basis. Over a 3-year period, the contract represents minimum sales in excess of forty million dollars. Whereas the Company owns the exclusive licensing rights to sales of the OPTEC™ Fuel Maximizer; per the Royalty agreement dated August 27, 2018. Although the Company's revenues will be less per the contract, its gross profit is anticipated to be higher as it will not have to be subjected to inventory, quality control, freight and staffing for distribution.
On August 27th, 2018, the Company signed a Royalty Agreement with Optimized Fuel Technologies whereby certain pre-existing clients could purchase the OPTEC™ Fuel Maximizer on a manufacturer direct basis.
Based on the contract, the Company anticipates royalty revenues exceeding ten million dollars ($10,000,000) over the next three years being the initial 3-year period of a five-year contract.
OPTEC International, Inc. is currently conducting fuel saving and emission reduction tests in several other countries around the world with potential future distributors, joint-venture partners and fleet operators.
The OPTEC™ Fuel Maximizer is manufactured by Optimized Fuel Technologies and is a patented advanced "plug and play" technology designed for modern computer-controlled gasoline and diesel engines eliminating or substantially reducing harmful emission gases while simultaneously increasing performance and optimizing fuel economy.
Safe Harbor Statement: Safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as OPTi, OPTEC or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe the Company's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. OPTEC International Inc.
OPTEC International, Inc.
2721 Loker Avenue West
Carlsbad, California 92010
View original content:http://www.prnewswire.com/news-releases/optec-international-inc-signs-royalty-contract-for-10m-revenues-over-3-year-period-300703024.html
SOURCE OPTEC International, Inc.