ST. PETERSBURG, Fla. / ACCESSWIRE / August 15, 2014 / Sylios Corp (OTC Pink:UNGS), through its subsidiary, The Greater Cannabis Company, LLC, is pleased to announce that it has entered into a U.S. based licensing agreement with Artemis Dispensing Technologies ("Artemis") for the development and resell of its automated dispensing product.
Under the collaboration and license agreement, Artemis will be responsible for the development of a high end automated dispensing product. Upon launch and sales of the product, Artemis will be responsible for the installation, training and customer support for the hardware and software. The Company will be responsible for direct sales, addition of key distributors and sub-licensing of specific territories within the U.S.
Under the terms of the agreement, the Company will pay to Artemis a one-time licensing fee in the amount of $500,000.00 broken into tranches and based on development parameters. The Company has made the first payment towards the licensing agreement. Artemis will also receive a percentage of transaction fees generated on a monthly basis per unit. The Company will receive revenue generated directly from sales either though its website or sales staff, a royalty from sales generated through third party vendors/distributors, transaction based revenue and a percentage of any sub-licenses sold. In addition, the Company shall have the first right of refusal to purchase a license for the use of the same technology in other countries.
The Company's intended use of this product is solely as its first tier cannabis dispensing product. The product is scheduled to be completed and launched during the fourth quarter of 2014. As previously announced, the Company will launch its website dedicated to the new cannabis dispensing product in the very near future and anticipates presales to commence immediately thereafter.
Artemis previously entered into a Master License Agreement for the development and use of this proprietary technology focusing on automated dispensing units, inventory management and digital signage. By entering into this license agreement with Artemis, the Company has retained the full scope of technology required for launching an advanced cannabis dispensing product.
As such, the Company and Signifi have mutually agreed not to complete the acquisition as described in the Letter of Intent entered into earlier this year. Instead, the company will proceed with product development through the license agreement with Artemis. By terminating the proposed acquisition and moving forward with the licensing agreement, Management estimates that the number of shares required to be issued by the Company will be reduced by over 300 million, cash outlay for capital expenditures will be reduced by over $1.0 million and the time the Company recognizes revenue from sales cut in half.
Wayne Anderson, President of Sylios Corp, noted, "While the original plan for an acquisition and integration of the entire Signifi team was our original goal, Management strongly believes that it is in the best interest of shareholders to move forward with the licensing agreement with Artemis. The reduction in shareholder dilution will allow shareholders to benefit from the launch of the Company's cannabis dispensing product and subsequent revenue recognition in a more timely fashion."
About Sylios Corp
Sylios Corp, based in St. Petersburg, FL, is a holding corporation with operations engaged in the exploration and development oil and natural gas properties, investments in equities and corporate debt and the development of products utilized for the medical and recreational marijuana industry. Additional information can be obtained at the Company's website, www.usnatgascorp.com. The Company's website address will change to www.sylios.com.
About Artemis Dispensing Technologies
Artemis is a technology company founded with the goal of developing custom automated dispensing solutions. Its expertise is in working with verticals that require high security and temperature control and flexible payment processing technologies. Additional information can be obtained at the Company's website, www.artemisvending.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Additional risks and uncertainties are set forth in the Company's Unaudited Annual Report for the year ended December 31, 2013, which can be found on the OTC Markets website, www.otcmarkets.com.
SOURCE: Sylios Corp