FINANCIALProfileSecondQuarter,2008Symbol:PYCT
PayChest Acquires Green Technology
Multinational marketing and distribution now within reach
$40BILLIONOPPORTUNITY
In a move that gives the company immediate
access to a market valued at nearly $40 billion,
PayChest Inc. (PYCT: Pinksheets) has
acquired the worldwide rights for sales, mar-
keting, manufacturing, patents and trademarks
for Flushaway™ technology and products.
Flushaway™ exploits a unique form of patent-
ed, biodegradable, dissolving plastic-substitute
film to create a range of products that have
already won market share through giant retail-
ers WalMart, Walgreens, and K-Mart in the
USA as well as similar distributors overseas.
Until now, the rights to this remarkable tech-
nology have been held by a tiny Canadian
company, Consolidated Ecoprogress, that
struggled to compete in the jungle of giant US
retail. Despite exceptional consumer appeal
the Flushaway line needed more marketing
muscle.
Now in the hands of PayChest, the mass-mar-
ket potential of Flushaway™ products looks
set to become a reality. PYCT puts the power
of the US financial markets behind what has
already to be a proven winner with consumers.
It puts fuel in the tank to drive this opportuni-
ty into the land of exceptional profits.
For PayChest, the acquisition of the
Flushaway™ technology and product line
gives the company and its shareholders a
viable business with a track record of domestic
and international sales.
REVOLUTIONARY PRODUCT
Flushaway™ technology is basically a “plastic”
film coating process that gives the company
the ability to make absorbent products, such as
disposable diapers and feminine hygiene prod-
ucts, that break down in commercial waste-
water streams. The environmentally benign bi-
products make Flushaway™ the only green
product of its kind in the world.
Part 2
Flushaway’s™ first entry into the market, one
that has consistently met with consumer satis-
faction, is a line of feminine hygiene products.
While the product has been proven environ-
mentally sound, underlined by official recogni-
tion from the Canadian government, the fact
that women can flush spent items makes it
uniquely convenient. So while its green appeal
may help Flushaway™ pull a five point share
of a $10.0 billion annual market, its conven-
ience appeal should help it build a much
stronger following. Industry insiders have esti-
mated up to a 20-point share.
The basic design of the Flushaway™ product
has been tested in two more key product lines:
the adult protective under-garment and the
disposable infant diaper—both flushable and
both biodegradable. Combined, those market
amount to another $20 billion, bringing the
Part 3
total annual market for Flushaway™ product
applications to $30 billion at last tally, but that
was several years ago. Current estimates place
the total market value closer to $40 billion.
Under the terms of the Flushaway™ deal,
PayChest has acquired the following exclusive
global rights:
Worldwide Sales & marketing rights excluding
select territories where distribution agreements
already exist
The right of first refusal on any existing distri-
bution agreements that may lapse, terminate or
be abandoned
Worldwide use of Flushaway™ related IP,
trademarks and patents with exclusive use,
where granted
Worldwide exclusive manufacturing rights to
Flushaway™
Research agreement for joint product develop-
ment
PayChest will continue to work with
Consolidated Ecoprogress on the existing pro-
duction and supply chain
The Flushaway™ operation is headquartered
in Hong Kong with a regional office in the
United Kingdom. Worldwide offices are
scheduled to open in USA, South Africa,
Vietnam, India and Brazil during this year.
To acquire the rights, PayChest will provide a
note payable of $5,000,000 (US) to
Consolidated Ecoprogress Technology Inc.
over a 4-year period, for the delivery of these
contracts and further fulfill contract payment
obligations to Consolidated Ecoprogress of 5
per cent royalties on sales.
We have been following Flushaway™ for sev-
eral years, through ups and downs. While
Consolidated Ecoprogress managed to develop
and enhance the product, and made incredible
headway in bringing retailers like WalMart and
others on board, we always maintained that the
brand lacked the financial resources to com-
pete in the giant US retail market.
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