MOU with INDITEX - Additional Information
Perth, June 2, 2022 AEST (ABN Newswire) - Nanollose Limited (ASX:NC6) (N0L:FRA) a leading bio-materials company commercialising scalable technology to create fibres and fabrics with minimal environmental impact, announces the following additional information in respect of the binding memorandum of understanding ("MOU") entered into on 26 May 2022 with one of the world's largest fashion retailers, Industria de Diseno Textil, S.A. ("INDITEX").
Further to the announcement by the Company on 26 May 2022 regarding the MOU ("Announcement"), the Company notes the following material terms of the MOU:
(a) Commencement Date: The MOU commenced upon execution, on 26 May 2022 ("Commencement Date").
(b) Term: The MOU continues from the Commencement Date, throughout the pilot phase of the Company's lyocell product development, until such time as the parties wish to extend the relationship beyond the scope contemplated (being testing of the materials provided by Nanollose), or termination in the manner set out in the Announcement ("Term").
(c) Material Supply: Throughout the Term, Nanollose will supply samples of its Tree-Free (and/or blended) nullarbor(TM) lyocell which are sufficient for INDITEX to undertake testing. Initial samples of fibre will be provided as soon as possible, and initial samples of three types of fabric will be provided as soon as available and by August 2022 (unless agreed otherwise). The cost of these initial samples to Nanollose is not considered material.
(d) Testing: In consideration for its early access to the Company's fibre, INDITEX will (at its own cost) undertake testing and prototyping and will provide valuable commercial and technical feedback to Nanollose on its materials.
The economic impact of the MOU on Nanollose is that Nanollose receives valuable commercial and technical feedback on its fibre. The MOU is significant to Nanollose on the basis that INDITEX is one of the world's largest fashion retailers, and that by entry into this MOU, Nanollose now has the benefit of working alongside INDITEX, receiving their feedback to improve and refine Nanollose's products ahead of any potential future commercialisation.
About Nanollose Limited
Nanollose Limited (ASX:NC6) is an innovative Australian company that uses a low cost and eco-friendly fermentation process to grow fibres that could become a sustainable alternative to conventional plant-derived cellulose fibres. The Company's process, which uses streams from various large-scale industries like sugar, wine and food, has the ability to produce 'Plant-Free' Cellulose. Cellulose is the hidden building block polymer most consumers know nothing about, but forms a huge part of items used in their everyday life such as clothing, paper and hygiene products.