UAS Drone Corp. announced that its wholly owned Israeli subsidiary, Duke Airborne Systems Ltd. and Elbit Systems Land Ltd. signed a Collaboration Agreement for global marketing and sales, and the production and further development of Duke’s developed advanced robotic system mounted on an UAS armed with lightweight firearms, or TIKAD.
According to the main terms of the Collaboration Agreement:
- Duke has granted Elbit a worldwide exclusive license for the use of Duke’s know how and intellectual property, and for the marketing, sales, production, and further development of the TIKAD for military, defense, homeland security and para-military uses.
- The parties will also cooperate in continuing a project that has already started with a customer in the Asia Pacific region. Elbit has agreed to invest, at its discretion and pursuant to certain milestones, in the further development and setting up of serial production lines of TIKAD and may elect to increase such investment subject to the satisfaction of certain criteria, including Elbit’s right to terminate the Agreement if, for example, the Project is cancelled by the customer. Such investment amounts will be made into Elbit’s owned assets and production lines of TIKAD. Elbit will recoup fifty percent of its investment amount, up to $6 million, by offsetting fifty percent of royalty payments that may be due to Duke.
- In addition to the cooperation in the Project, Elbit will pay Duke royalties from revenues received from world-wide sales of TIKAD, with royalty rates ranging from low to mid-double figure percentages, depending on the tiers of the selling price of TIKAD. Revenues to be received from the Project will entitle Duke to a higher payment and rate of royalties. Elbit will pay Duke royalties on sales of TIKAD units for a period starting from the date of the Agreement until 15 years following receipt of US $50 million in cumulative revenues from sales of TIKAD units.
- Duke to pay Elbit similar rates of royalties for revenues received by Duke from sales of its advanced robotic system for civil use, if such systems will include new know-how developed by Elbit.
Elbit Systems Land is a subsidiary of Elbit Systems Ltd., an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world.
We believe that this collaboration represents a significant opportunity for UAS Drone Corp. to expand its global business and sales of its TIKAD product. There is no guarantee that UAS Drone Corp., via Duke, will recognize any royalties or that the further development or future sales of the TIKAD will be successful.
Source: Press Release