MOU to provide mobile water treatment systems in Japan
LOS ANGELES, CA, Apr. 6, 2011 -- Sionix has signed an MOU with TII Trading International Investment that aims to remediate contaminated water -- including removal of radioactive contaminants -- caused by the Japan earthquake...
LOS ANGELES, CA, Apr. 6, 2011 -- Sionix Corporation has signed a Memorandum of Understanding (MOU) with TII Trading International Investment that aims to remediate contaminated water -- including removal of radioactive contaminants -- caused by the recent earthquake and resulting tsunami in Japan. The MOU outlines TII's purchase of thirty (30) mobile water treatment systems (MWTS) and the subsequent manufacture of more in Japan.
TII intends to finance its purchase of MWTS by obtaining a letter of credit from a banking institution.
The MOU also defines the general terms and conditions under which TII and SIONIX will form a joint venture (JV) to provide on-going, long term fabrication and assembly of MWTS in Japan to remediate drinking water and wastewater in multiple refugee centers being established in affected areas.
The events of March 11, 2011 decimated basic infrastructure, and created leaks and potential leaks from multiple nuclear power plants which threaten the health and survival of the local inhabitants, and impact necessary social and community services. It is anticipated that the JV will become a licensee of SIONIX intellectual property, including patent and know-how (SIONIX IP) in Japan and its external territories.
The anticipated cash proceeds to SIONIX from this significant transaction, if consummated, will include the sale of MWTS, a share of earnings from the JV, and license fees for use of SIONIX IP. This undertaking will have several stages.
Stage One: one MWTS is expected to be transported to Japan in order to be tested at site conditions.
Stage Two: After the successful completion of site testing, SIONIX will immediately initiate the fabrication and assembly of twenty-nine additional MWTS at locations convenient to the west coast of the U.S. determined by SIONIX. During the course of fabrication and assembly, technicians employed by the JV will be assigned to SIONIX for in-depth training in all matters concerning the MWTS and the embedded SIONIX IP.
Stage Three: All subsequent administration and installation of the MWTS in Japan will be made through the JV.
"The Japanese people affected by these disasters need drinking water as soon as possible as well as treated, recycled water for sanitation. The main concern is also the long lasting effect of radiation in young children. We believe this is a very important humanitarian cause and we are cooperating with public and private agencies in Japan to support their difficult task of recovery," said Katharina Blancato, TII Trading International Inc. CEO. "SIONIX is known to provide the technology necessary to treat contaminated water and the know-how to commission its MWTS quickly and efficiently. We believe that this technology will be proven effective for the present difficult conditions."