Jul 15 2010
Landec Corporation (Nasdaq:LNDC), a polymer science company that develops and markets patented polymer products for food, agricultural, medical device and licensed partner applications, announced today that its subsidiary, Apio Inc., has signed an exclusive license agreement with Greenhouse Grown Foods Inc. (d/b/a Windset Farms), a privately held produce company headquartered in Vancouver, Canada.
Apio Inc., a wholly owned food subsidiary of Landec Corporation, has granted an exclusive license to Windset for Windset to utilize Landec’s proprietary breathable packaging to extend the shelf life of specific greenhouse grown vegetables, initially covering cucumbers and, following further successful trials, to include peppers and tomatoes, specifically, grape, roma and cherry type tomatoes.
Under the agreement, Apio will receive a one-time upfront research and development fee of $100,000 and ongoing license fees equal to 3% of net revenue of the exclusive products utilizing the proprietary breathable packaging technology, with or without the BreatheWay® trademark. The ongoing license fees are subject to annual minimums of $150,000 for each of the three types of exclusive product as each is added to the exclusive agreement.
Windset will have the exclusive use of the Landec technology and BreatheWay trademark for use in the production, marketing, distribution and sale of the exclusive products in the United States and Canada within the exclusive licensed field. For its part, Apio will provide Windset with all necessary technical services and support regarding any future development of the technology. The initial term of the agreement for each exclusive product is for four years with automatic renewal of four year terms for each exclusive product, unless specific products are terminated.
“This agreement is the culmination of over one year of effort by Apio to expand the application of Landec’s proprietary and patented technology for specific vegetable products,” said Ron Midyett, Apio’s Chief Executive Officer. “We are pleased that Windset recognizes the unique properties of our packaging technology. Windset has a recognized history of producing, marketing and distributing high quality greenhouse grown vegetables and we look forward to working with them.”
“We are excited about utilizing Landec’s technology to differentiate, and enhance, the quality of our vegetables for our customers and for their customers,” commented Steve Newell, Windset’s Chief Executive Officer. “This long-term exclusive license is part of our strategy to develop and expand our existing line of products and customer base. We believe that the combination of our production, marketing and distribution capabilities, along with the Landec technology and any further developments of the technology, will result in a profitable collaboration for both Windset and Landec/Apio.”