Highlights

• Clean TeQ Water has signed a technology licencing agreement with environmental engineering company, Beijing Enterprises Industrial Environment Technology Ltd., Co (BEIE), a subsidiary of Beijing Enterprise Water Group (BEWG).
• Under the agreement BEIE can use Clean TeQ Water’s proprietary technology for water and wastewater treatment, solid waste treatment, repair, reclamation, or post-closure remediation of contaminated sites, including treatment of and/or prevention of groundwater contamination.
• Clean TeQ Water will receive a fixed royalty prepayment of $400K in total for years 1 and 2, and from year 3 an annual 4% royalty. Clean TeQ will also provide paid technical services for design and other auxiliary services.
• Clean TeQ Water is in the final stages of commissioning the Ordos BIONEX™ project for one of BEIE’s customers, and the Company believes BEIE is well positioned to introduce Clean TeQ Water’s technologies to additional customers in the growing China market

Clean TeQ Water is pleased to announce it has signed a Technology Licence Agreement with environmental engineering company, BEIE. BEIE is a subsidiary of BEWG, a company listed on the main board of the Stock Exchange of Hong Kong Limited and is focused on the Industrial Wastewater Treatment and Remediation sectors.

Background

As background to the agreement, Clean TeQ Water entered a contract with BEIE (nee BHZQ) to supply CNQ BIONEX™ technology to BEIE’s customer, Gao Tou Yao Colliery, North United Power, in Inner Mongolia. Clean TeQ Water is responsible for the design, manufacture, delivery, installation supervision, and commissioning of the BIONEX™ plant. The Plant is currently in the final commissioning phase.

The water treatment market in China is substantial due to the country’s increasing focus on addressing water pollution and improving water quality. The market for Clean TeQ Water’s solutions includes treatment processes for municipal and industrial water for reuse and environmental discharge. BEIE and its majority shareholder, BEWG, are well positioned in the China market to introduce Clean TeQ Water’s technologies in the fields of water and wastewater treatment; solid waste treatment; repair, reclamation, or post-closure remediation of contaminated sites, including treatment of and/or prevention of groundwater contamination and achieve on-going sales.

The Technology Licence Agreement

Clean TeQ Water will grant BEIE an exclusive licence to exploit the Clean TeQ Water Intellectual Property for the use of the Technology in the fields outlined above, and for the provision of industrial services by BEIE to its customers, exclusively within in the region of China. This licence shall remain valid for a period of ten years (Licence Term), subject to the terms of the Agreement.

Under the licence terms of the agreement, Clean TeQ Water will receive a fixed royalty prepayment of $400K in total for years 1 and 2, and an annual 4% royalty from year 3. The royalty will be calculated on the revenues generated from the deployment of all the Clean TeQ Water technologies within water, wastewater, and remediation projects. Clean TeQ Water will also provide paid technical services for design and other auxiliary services. This agreement presents a significant opportunity for the Company to unlock additional value, particularly in light of the sizable water treatment market in China.

Clean TeQ Water also operates a manufacturing facility in Tianjin dedicated to producing the BIOCLENS® encapsulated bacterial product. It is expected that the majority of sales of the BIOCLENS® product will be in the China market and so, under a separate agreement, BEIE will purchase the current BIOCLENS® inventory and finance the operations of the facility until 14 October 2024 and thereafter by mutual agreement.