Smart building materials company ClearVue Technologies (ASX: CPV) has gained in Monday trading after inking an MOU with South African-based leading glass processor and supplier Glass Partners Holdings.
Under the terms of the non-binding MOU, both parties will work together to formalise a Manufacturing and Distribution Licence as soon as possible with the expectation that this is completed and signed within 60 days of the MOU being signed.
Glass Partners – which has nine manufacturing facilities and outlets located in most major centres across South Africa – will become the exclusive licensee to manufacture and distribute the ClearVue products and technology in South Africa and Mauritius.
The territories may be extended to include additional non-exclusive southern African region countries after 12 months.
The term of the Licence will be 5 years (with 3 further 5-year extensions subject to agreement compliance and meeting performance criteria).
Royalties are to be paid based on square metres of glass manufactured and sold.
This MOU is a significant step forward for ClearVue being our first MOU for our very first licensee who will manufacture and sell ClearVue’s innovative building integrated photovoltaic products in South Africa and Mauritius,” ClearVue Executive Chairman Victor Rosenberg said.
“Glass Partners are a great fit for ClearVue as they are well established across Southern Africa and already both manufacture laminated glass, and have tempering facilities but also fabricate sell to other fabricators in those markets.
Mr Roseburg said ClearVue would work with the Glass Partners team after signing the Licence to ensure Glass Partners were able to produce the ClearVue products, carry out any local testing and commence production as soon as is possible.
Shares in ClearVue were last trading 3c, or 10.5% higher at 31.5c at noon on Monday.