News and Announcements
Leaf Resources (ASX: LER) Enhances Portfolio through Licensing Acquisition
- Published October 30, 2017 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
KEY TAKEAWAYS:
- Leaf Resources has finally managed to acquire a license to use the newly developed LBC Technology to provide a biodegradable coating to a wide range of products.
- American paper producers are potential clients as far as this technology is concerned and the company hopes to capitalize on its timely licensing agreement to strike and lucrative deal and ensure a steady stream of cash-flow over the next 6 to 12 months.
- Coffee cups, food packaging and corrugated boxes are segments that could use this technology as it would serve to reduce the pressure on landfills by using a coating that can decompose and can be recycled.
October 2017 turned out to be an eventful month for Leaf Resources (ASX: LER) because it managed to acquire licensing rights to LBC Technology, the latest on the horizon for the biodegradable packing niche market. An acronym for Lignin Barrier Coating, this technology uses glycerol and lignin to create a waterproof coating for paper which can be recycled and is also renewable.
Courtesy of having acquired this license, Leaf Resources will now be able to tap into the coating segment by providing an eco-friendly alternative to the traditionally used wax and plastic coating materials. Some of the areas wherein the LBC Technology would come in handy are cardboard boxes, food containers, coffee cups and black plastic. As a direct consequence of this move, the burden on landfills would be considerably reduced owing to the biodegradable material used.
Having been developed over the last five years, the eco-friendly nature of LBC Technology is evident from its readiness for being recycled, repulped and scaled. This is also indicative of the vast economic potential of Glycell process, a patent of Leaf Resources, wherein the company can expect cash-flow during the early stages through manufacturing network.
The estimated duration of cash flow is between 6 and 12 months with most of the revenue coming from paper companies. Given the minimal capital expenditure, profits likely to be accrued from this licensing arrangement could be phenomenal.
About Leaf Resources (ASX: LER)
Leaf Resources is an emerging renewable chemical company focused on commercialising the GlycellTM process; A disruptive technology that alters the economics of using biomass as a feedstock for the production of industrial sugars that can be used to produce biobased chemicals, bioplastics and other renewable products. Leaf Resources was voted #4 of the Hottest Small Companies in the Advanced Bio-Economy 2016/17 ABLC San Fran.