Cavitation Technologies, Inc. (CTi), a leader in ESG-focused nano-technology systems for fluid processing, has announced a pivotal agreement with Desmet Belgium S.A. This deal, finalized on October 14, 2024, enables CTi to monetize select U.S. and international patents alongside related intellectual property, previously licensed to Desmet for global use in vegetable oil, fats, and oleo applications.
Under the agreement's terms, CTi will transfer several patents and associated technical data to Desmet, including ownership of two U.S. trademark registrations for Nano Neutralization® and Nano Reactor®. Importantly, CTi retains a worldwide, exclusive, and royalty-free license to utilize these patents and technical information in specific sectors such as water and wastewater processing, and the production and sale of alcoholic beverages.
Neil Voloshin, CEO of CTi, highlighted the transaction's significance, noting it will 'generate substantial capital for the Company, supporting our current business plans without diluting shareholder value.' This strategic maneuver allows CTi to continue its innovation in primary business areas, including the design and sale of Nano Reactor® systems within licensed fields, while capitalizing on its intellectual property assets.
The agreement is set to conclude within ten days of the announcement, following CTi's delivery of necessary documents to Desmet. This swift execution reflects CTi's dedication to operational efficiency and stakeholder value. For Desmet, acquiring these intellectual property rights enhances its capabilities in the vegetable oil, fats, and oleo sectors, potentially strengthening its global market position.
This transaction not only provides immediate financial benefits to CTi but also illustrates a strategic approach to intellectual property management. By selectively monetizing IP while retaining critical licenses, CTi sets a precedent for technology and engineering firms navigating the complexities of IP portfolio management. The deal underscores the growing strategic value of intellectual property in fostering innovation and growth within core business areas.
Industry observers and investors are keenly watching CTi's next moves, particularly how the company will allocate the newly acquired capital towards research and development in its retained fields of expertise. The outcome of this strategy may influence broader industry practices regarding IP monetization and management.
