The indication of interest and proposed terms of the license agreement grants Haskel exclusive license to Shumate's proprietary Hemiwedge technology worldwide in the field of subsea products in smaller bore size applications. Under the terms of the letter of intent, the license fee at signing is proposed within a range of $250 thousand to $500 thousand, which is a function of the final scope of the license and other terms within the proposed agreement. Other terms will include paying a royalty on sales of Hemiwedge licensed products with minimums over time. All parties are working to complete additional required marketing studies, due diligence and a definitive agreement over the next 120 days.
Patrick Kealey, President and General Manager of Haskel International stated, "We have been working with the Hemiwedge technology team for almost two years in a collaborative effort to develop new proprietary products that operates at very high pressures for use in subsea applications. This growth market demands long lasting high performance products and trends to higher pressures."
Larry Shumate, Chairman and Chief Executive Officer of Shumate Industries, stated, "We are very energized by the opportunity to have our products affiliated with a global company like Haskel International, which is a subsidiary of a Fortune 100 corporation. Their sterling 60 year reputation and experience in sub sea high pressure is an important association for Hemiwedge to penetrate that growing market. We believe this new relationship presents another strong opportunity for Shumate to prove the effectiveness and quality of our Hemiwedge technology."
Haskel International Inc. is recognized as the world's leading manufacturer of hydraulic and pneumatic driven, high pressure systems and accessories. For nearly 60 years, Haskel has been a recognized leader in high pressure technology, manufacturing a wide range of high pressure air driven liquid pumps, gas boosters, air amplifiers, systems and accessory equipment.
Shumate Industries, Inc. is a Texas-based energy field services company that incorporates new technologies to bring products to market leveraging its existing infrastructure, expertise and customer channels. The Company operates through two wholly owned subsidiaries, 1.) Shumate Machine Works, an energy-focused contract machining and manufacturing division, and 2.) Hemiwedge Valve Corporation, a proprietary new valve technology division, with product lines targeting flow control, subsea, down-hole and tar sands applications.
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