Roaming Messenger Signs Exclusive Technology Licensing Deal
September 22, 2006 08:30:27 (ET)
SANTA BARBARA, Calif., Sep 22, 2006 (BUSINESS WIRE) -- Roaming Messenger, Inc. (RMSG, Trade), announced today that it has entered into a definitive licensing agreement for its mobile messaging technology and related intellectual property portfolio.
On September 18, 2006, Roaming Messenger entered into a ten year Exclusive Technology Licensing Agreement with Zingerang, Inc. Under this agreement, the Company grants to Zingerang an exclusive, worldwide, sub-licensable, transferable, royalty-bearing right and license to the Roaming Messenger technology and related patent portfolio. In consideration for granting the license to Zingerang, the Company shall receive an ongoing royalty fee equal to five percent (5%) of Zingerang's gross sales, to be paid quarterly. The Company will immediately receive a one time payment equal to $100,000 as a recoupable advance against the royalties. During the term of the Agreement, Zingerang may, at its sole discretion, pay to the Company a one-time royalty payment of $500,000, in lieu of ongoing royalties, less certain patent application fees.
Additionally, the Company participated in Zingerang's founder round of financing where it acquired forty million (40,000,000) shares of common stock in Zingerang, which represents a large minority position, for a total investment of $10,000.
Jon Lei, the Company's Chairman and CEO, said, "We are delighted to have consummated this licensing deal with Zingerang. This transaction is in line with our new strategic plan of licensing the Roaming Messenger technology instead of continuing the capital intensive build out of its commercial operation. In this transaction, we are not only receiving cash royalties, but we are also participating in the future upside of Zingerang through our large equity position."
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
SOURCE: Roaming Messenger, Inc.
Roaming Messenger, Inc.
Jon Lei, 805-683-7626
Copyright Business Wire 2006
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