GeckoSystems Signs Mobile Robot Joint Venture With Chinese Wheelchair Manufacturer
GeckoSystems to see Significant Advance in Exposure and Market Share with Proprietary Technology in Wheelchair Production
CONYERS, Ga., Nov. 29, 2011 /PRNewswire/ -- GeckoSystems International Corporation (Pink Sheets: GOSY | www.geckosystems.com/) -- announced today that negotiations establishing a new Joint Venture under direct sponsorship of the government of the People's Republic of China, Nanle Electric Wheelchair Co., have been completed. The CEOs of both organizations have signed the Joint Venture agreement.
GeckoSystems is a dynamic leader in the emerging mobile robotics industry revolutionizing their development and usage with "Mobile Robot Solutions for Safety, Security and Service™".
GeckoSystems will realize a significant boost in exposure of its new "collision proof" wheelchair technology using its mobile robot solutions. This agreement enables GeckoSystems' technology to have more credible worldwide visibility for their new technologies as well as their mature technologies. This will give GeckoSystems a competitive cost advantage entering into commercial markets such as healthcare, security, and government applications.
It has been agreed that there will be an exchange of stock between GeckoSystems and Nanle. GeckoSystems' CEO will have a seat on the board of directors for the newly created company. Mechanical design criteria for a more appropriate wheelchair configuration designed to leverage the benefits of power mobility under artificial intelligence (AI) navigational control, has already been submitted to the Chinese engineers that will be working with Nanle. Both parties agreed that: In order to protect safety and security of the people and society from terrorists, the core technologies shall be strictly confidential and the JV Company and the Wheelchair Manufacturer shall take special care to keep the technologies secret.
Because of the importance of this venture to GeckoSystems' Chinese business partners, and to the People of China, land has been purchased and construction will soon begin on a new factory.
Heightened demand for advanced healthcare products like the "collision proof" wheelchair that uses GeckoSystems advanced AI navigation system is a direct result of the plan announced by the government of the People's Republic of China in 2009 to "deepen healthcare" system reforms. This plan sets the ambitious goal of universal health care in China by 2020. Among the many changes coming to the medical system in China is greater mobility for the disabled, and Nanle wheelchairs will be a key part of this effort, delivering leading edge wheelchair technology and design to the Chinese people.
Conservative market estimates for the need for wheelchairs in China are impressive. Worldwide, the average usage for wheelchairs is one percent (1%) of the general population. In China that would be equal to 13,400,000 people. Worldwide, wheelchair sales per year average 0.0515% of the population. In the Pacific Rim, excluding Japan, that number is only is 0.0138%. In order to meet its stated healthcare goal for 2020, the Chinese government has to manufacture and distribute an estimated 5,270,000 wheelchairs over the next ten years. This will bring them in line with the world average. If only twenty percent (20%) are powered and "collision proofed," that is over 100,000 electric wheelchairs per year, over 8,000 per month. At an average cost of at least $1,500 each, that represents annual sales of $150,000,000 per year in mainland China alone.
Once cash flows are realized by GeckoSystems, the Company expects to fund the Beta testing of their flagship product, the CareBot™, and pave the way for its entry into the consumer market.
"We are pleased with the finalization of this fundamental agreement for our company, for our shareholders, as well as for the investment community. We believe our shareholders will be as excited as we are for having consummated such an agreement with this new Chinese government sponsored company," concluded Spencer.
