Cavitation Technologies to transfer several patents to Desmet

Cavitation Technologies Inc., designer and manufacturer of innovative flow-through nanotechnology systems for fluid-processing applications worldwide, has entered into an agreement with Desmet Belgium S.A. (formerly Desmet Group S.A.) that, once the transaction is completed, will monetize for the company certain of its U.S. and non-U.S. patents and related intellectual property that for several years have been licensed to Desmet for its use on a global basis in vegetable oil, fats and oleo applications.

Under the agreement signed Oct. 14, the company will assign and transfer to Desmet several U.S. and non-U.S. patents and associated technical information that are currently licensed to Desmet.

The company will also assign to Desmet ownership of two U.S. trademark registrations that Cavitation Technologies holds for its Nano Neutralization® and Nano Reactor® marks, respectively.

Under the agreement, with the patent assignment to Desmet, the company will reserve to itself, and will receive a license back, of a worldwide, exclusive, transferable and royalty-free license and right to practice and use the assigned patents and associated technical information in businesses, activities, projects, uses and applications (1) in the field of water and wastewater processing, recovery, recycling and purification (including oilfield wastewater), and/or (2) the field of the manufacture, distillation, brewing, enhancements, sale and marketing of alcoholic beverages.

Under the reserved and grant-back licenses retained and received by the company under the agreement, Cavitation Technologies will have a worldwide, exclusive, transferable and royalty-free license and right to design, build, use, export, improve, sell and market Nano Reactor® devices and Nano Reactor® devices and systems (and products) that incorporate or utilize Nano Reactor® devices, in each case within the licensed fields, and to continue to use the Nano Reactor® trademark in connection with its business, systems and products within the licensed fields.

“Once completed, this transaction will enable the company to monetize the value of the IP rights already under license to Desmet, while at the same time retaining a full range of exclusive licenses and rights required by the company to continue the development of business partnerships, projects and opportunities in our primary lines of business,” said Cavitation Technologies CEO Neil Voloshin. “It will also generate substantial capital for the company, providing support for our current business plans, without any dilution of our shareholders.”

The transaction will be concluded upon the company’s delivery of assignment instruments and related documents to Desmet, which is anticipated to be complete by late October.

Desmet is a leading global provider of custom-engineered plants and equipment for the food, feed and biofuels industries.

Its reliable and innovative technologies transform oilseeds, grains and tropical oils into protein feed/food, edible oils/fats, oleochemicals and biofuel.

Desmet owns proprietary technologies in many areas of the oils and fats industry and offers unique skills and experience in the design and supply of technologies for plants covering all stages of production, including preparation and pressing of seeds, extraction of oil, oil refining and fat modification.

With over 75 years of experience and significant R&D capacity, Desmet has sales and engineering offices in 15 countries.