James E. Wagner Cultivation Corporation, on April 17, 2019, entered into a non-binding Letter of Intent to provide a Technology Licence for its GrowthSTORM™ Dual Droplet™ System to Ascendo Group, for use at the Licensee’s proposed cultivation facility in South Africa.
"Both parties have agreed to continue negotiations with the intent of executing a Definitive Agreement, at which time JWC will provide the Licensee with technology rights and proprietary knowledge of its technology and equipment for use in the growth and cultivation of plants at the Licensee’s proposed cultivation facility, located in South Africa. Pursuant to the letter of intent, the terms of the Definitive Agreement, once executed, will include a royalty term to provide JWC with a fixed percentage of the total revenues earned from the Licensee’s proposed cultivation facility. The royalty is to be provided for the whole term that the Technology Licence is in place under the Definitive Agreement, as compensation for the consulting services and materials, and for the Technology Licence, as provided to the Licensee. The percentage amount of the royalty will be determined by the package of services and materials which the Licensee elects to subscribe for under the Definitive Agreement," the company explains.