Ikona Gear International, Inc. (OTC BB: IKGI), a leader in innovative gearing systems technology, today announced it has signed a technology licensing agreement with MAGNA Drivetrain AG & Co KG. Magna Powertrain, a wholly owned group of Magna International Inc., is a premier supplier for the automotive industry with full capabilities in powertrain / drivetrain design, development, testing and manufacturing.
"Our global licensing agreement with Magna is a major milestone for Ikona, and represents significant future revenue potential," said Ikona CEO and President Laith I. Nosh. "Magna has tested our patented gear technology extensively over the past three years, and we look forward to seeing our technology integrated into Magna's automotive applications, which will generate a significant and potentially multi-million dollar on-going revenue stream for Ikona."
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The Patented Ikona Gear
Nosh continued, "Ikona provides a breakthrough technology platform, and our business model focuses on securing licensing agreements with leaders in key markets such as automotive, which accounts for nearly 50 percent of the $100 billion global gearing industry. We look forward to working more closely with Magna through commercialization of new and innovative Ikona Gear-based automotive applications."
Licensing Agreement Overview
Under terms of the agreement, Magna will license the patented Ikona Gear technology platform for incorporation into automotive applications in passenger cars and light trucks, sports-utility vehicles, pick-up trucks, minivans, cross-utility and similar vehicles throughout North America and Europe. Magna has a right to designate its applications as exclusive on a per application basis, by paying an associated up-front exclusivity fee per designated Magna automotive application. Ikona Gear will receive royalties on a per application, per unit basis for exclusive and non-exclusive Magna automotive applications.
Automotive Applications for the Ikona Gear
Ikona's patented gearing technology has numerous automotive applications to which the license may apply. As per terms of the agreement, Magna will solely determine which applications to pursue, and will develop and market the applications to its OEM relationships which include DaimlerChrysler, General Motors, Ford, BMW, Volkswagen and others. Magna is presently supplying parts to roughly 32 million vehicles per year across its OEM relationships.
Ikona will be working more closely with Magna to monitor the release of its technology in new Magna applications, and will provide more detailed revenue expectations as the relationship progresses.
Magna Powertrain, a wholly owned group of Magna International Inc., is a premier supplier for the automotive industry with full capabilities in powertrain / drivetrain design, development, testing and manufacturing. Magna Powertrain employs over 11,000 people worldwide. Magna International, Inc. is a multi-billion dollar diversified, worldwide automotive supplier. The company designs, develops and manufactures automotive systems, assemblies, modules and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia and South America. Magna has approximately 82,000 employees in 220 manufacturing operations and 56 product development and engineering centres in 22 countries.
About Ikona Gear International
Ikona Gear designs, manufactures and markets innovative gearing-enabled applications and gear increasing and reduction systems. Ikona's patented intellectual property involves a unique gear tooth form that provides very high gear reduction and very high gear tooth contact. The company's patented technology affords significant advantages over traditional planetary gearing systems including: very high torque, reduced size and weight, zero backlash, accurate back-and-forth actuation, low friction, superior efficiency and low noise. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2". For more information on Ikona, please visit us at http://www.ikonagear.com/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
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SOURCE: Ikona Gear International