Health & Fitness
Health and Fitness
Health and Fitness
Thu, June 16, 2011
Wed, June 15, 2011 SONOMAX® ANNOUNCES LICENSE GRANT TO UFIT - UFIT';S 10 INTERNATIONAL DISTRIBUTORS WILL LAUNCH SELF-FIT HEARING PROTECTORS I
MONTREAL, June 15, 2011 /CNW Telbec/ - Sonomax® Technologies Inc. (TSXV: SHH) is pleased to announce that it has attained its first licensing contract, a license grant to uFIT Custom Hearing Protection Inc. The license is for instant, self-fit hearing protection for industry application. uFit's ten international distributors will launch the self-fit hearing protectors in 25 countries.
In addition to its industrial workplace initiative, uFIT anticipates the near-term establishment of consumer-focused Strategic Business Units for use with home hardware and at noisy events such as car racing, sporting events, and concerts.
The deal involves customization of the licensed products to uFIT specifications. These enhancements are intended to complement Sonomax's self-fit capabilities via uFIT's high volume-low cost, mass production business model.
In round numbers, contracted Fees and Minimum Royalties in years one to three are $1,000,000, plus manufacturer-of-record surcharges of approximately $500,000 on sales to uFIT of $5,000,000. The overall result will contribute approximately $1,500,000 to Sonomax's net profit. It is noted that the minimums are thresholds below which uFIT would lose rights under the license and are not reflective of the parties' aspirations.
Gary Warren, former President of Aearo Technologies, North America, has entered into a consulting agreement with uFIT Custom Hearing Protection, Inc., which defines his responsibilities as the development of the North American industrial and home hardware markets for uFit products. He will also sit on the company's Board of Directors. Mr. Warren joined Aearo in 1998 and during his ten-year tenure, the company experienced dynamic growth and was sold to 3M in 2008.
"We are fortunate to have Mr. Warren leading the charge in establishing uFIT's distribution of our hearing protection devices," said Nick Laperle, President and CEO of Sonomax. "This is something he did with unparalleled success during his career in the hearing protection industry while at Aearo."
"SonoCustom™ Pro-Fit Sound Isolating Earplugs by Sonomax previously faced two obstacles to success—pricing that was not competitive and the need for a technician to fit the product. These have been eliminated by the invention of a mass-producible instant, self-fit delivery system," said Mr. Warren. "There is now good reason to believe that the product has the potential to secure meaningful market share in the $300 million global HPD market."
About Sonomax Technologies, Inc.
Sonomax is a leader in the research, development and licensing of in-ear technologies, and software driven solutions for validating earpiece performance. Based in Canada and publicly traded, Sonomax holds over 50 patents worldwide. Learn more at [ http://sonomax.com ].
About uFIT Custom Hearing Protection Inc.
uFIT is a hearing protection company that was established to market and sell Sonomax's instant self-fit hearing protection technologies. Mr. Barry Schwartz, a former Chairman and CEO of Sonomax, is the controlling shareholder of the company.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Sonomax Technologies Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
