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Eden Innovations (ASX:EDE) - Executive Chairman, Gregory Howard Solomon - The Market Herald
Executive Chairman, Gregory Howard Solomon
Source: Business News
  • Eden Innovations (EDE) and its subsidiary, Eden Innovations LLC, have signed an eight-year supply agreement with Silent Partner International (SPI)
  • This agreement will see the company's concrete strengthening product, EdenCrete, sold to SPI
  • EdenCrete will be used in SPI's energy generation facilities to strengthen the structure and reduce electromagnetic pulses such as an explosion
  • Under the agreement, SPI has agreed to a minimum purchase price of US$48 million (around A$68.4 million)
  • If SPI continues to purchase the minimum amount, Eden LLC will pay a royalty at the end of each year of the agreement
  • However, if SPI fails to purchase the minimum order, then Eden LLC will not need to pay the royalty and may terminate the agreement
  • Eden's shares have jumped 37 per cent on the market and are trading for 3.7 cents each

Eden Innovations (EDE) and its subsidiary, Eden Innovations LLC, have signed a long term supply agreement with Silent Partner International (SPI).

This agreement will see Eden LLC sell EdenCrete to SPI over the next eight years.

SPI will use EdenCrete in the construction and maintenance of multiple proposed facilities that it is planning to build in the United States and other countries.

These facilities will be used for energy generation and coupled with either IT and data storage, aquaculture, or agri-tech.

Not only will EdenCrete strengthen the concrete for the facilities, it will also help reduce the impact of radio frequency interference and electromagnetic pulses such as solar flares and nuclear explosions.

Over the eight-year agreement, SPI has agreed to a minimum purchase price of US$48 million (around A$68.4 million).

This will be broken down to US$2 million (around A$2.85 million) over the first 18 months, US$2 million every six months from 19 to 36 months, and US$4 million (around A$5.7 million) every six months from 37 to 96 months.

If SPI continues to purchase the minimum amount, Eden LLC will pay a royalty at the end of each year of the agreement.

This will equate to three per cent for the first year, two per cent for years two and three, and one per cent for the remaining five years.

However, if SPI fails to purchase the minimum order, then Eden LLC will not need to pay the royalty and may terminate the agreement if it sees fit.

Eden's shares have jumped 37 per cent on the market and are trading for 3.7 cents each at 11:48 am AEST.


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