Leaf Resources Ltd (AX:LER) has entered into agreements with US-based Claeris, LLC to establish a JV entity, Leaf Development, to develop up to five renewable chemical projects using LER’s proprietary Glycell process. Claeris provides connections to a global network of organisations and professionals involved in the development of renewable chemical projects.
Enhanced ability to negotiate transactions
LER has proactively been seeking opportunities to commercialise its Glycell technology. Glycell breaks down biomass to cellulosic sugars, a feedstock for bio-chemicals, at a significantly lower cost than traditional processes. It has entered into binding agreements with Claeris, LLC of Dallas, Texas, US to establish a joint venture (JV) entity, Leaf Development, LLC. Claeris will also invest US$500,000 in LER. Leaf Development will develop up to five renewable chemical projects using the Glycell process. Claeris and LER will employ the develop, license and own (DLO) model, which leads to development and licence-related revenues and equity in each operating project. Under this ownership and structure, LER anticipates a greater ability to negotiate transactions and achieve favourable commercial terms.
To read the entire report Please click on the pdf File Below