BLAINE, WA: Hollund Industrial Marine, Inc. (Pink Sheets:HIMR) (“Hollund” or the “Company”) announced today that the company has executed a MOU (Memorandum of Understanding) formalizing Hollund’s exclusive right to manage and operate a patented underwater robotic resource technology (as yet unnamed technology partner).
Part of Hollund’s pursuit of this license was to enhance the potential to acquire concessions the South American Project Development Team cited as a $2B opportunity in Brazil. Having now secured the technology, Hollund is well positioned to benefit from planed future developments targeted at the Tucurui and Balbina dam reservoirs.
“Now that we have secured an exclusive license agreement, we have the ability to market and operate the technology across a number of disciplines,” stated Peter Meier, President of Hollund Industrial Marine. “This includes underwater gold mine dredging, spill response clean up, disaster recovery and environmental remediation. However, to be clear, we are completely focused on our core business model; which is to secure underwater tree harvesting concessions.”
It is expected that a formalized licensing agreement will be executed inside of September 2012. However, the MOU is binding for a term of 10 years. The MOU grants Hollund the full rights to begin selling, managing and operating the underwater robotic resource technology exclusively and immediately.
Management suggests the MOU provides a much more lucrative arrangement for Hollund. “Now, instead of receiving a finder’s fee for procuring underwater forestry concessions, we can share in the greater portion of a concession’s revenue,” continued Meier. “Revenue generated from a single log can range between $750 and $2,000.
Value is based on the region of the world where the underwater timber is harvested as well as the actual tree species and size. This patented technology will enable us to harvest inundated forests at depths of 120ft; giving Hollund an advantage in extracting larger trees and greater volumes.”
People close to the company suggest the real excitement resides in ‘what’s next’ for Hollund as a result of the exclusivity. That ‘next’ is the potential relationship expected to now be furthered with North Cal (premier reclaimed woods company) based on this license. Securing this license appears to have been a prerequisite for North Cal to continue forward with Hollund in a strategic partnership.
A strategic arrangement with North Cal at this juncture could accelerate Hollund’s growth and substantially evolve the business model.
Should Hollund secure a strategic relationship with one of the country’s most prominent wood product and distribution sources, the company could ensure a dedicated global sales outlet for its timber. The company’s revenue potential would also be positively impacted by this relationship quite significantly. Utilizing the support of North Cal, Hollund could become a beacon to the various global ‘Go Green’ initiatives.
Having now secured this exclusive license, management suggests that the stage has been set for Hollund and North Cal to seek a formal arrangement. Sources suggest that at the very least, an MOU or LOI could be completed within the month.
Hollund has aggressively stepped up discussions with pending concession prospects in South America.
Hollund expects meetings to continue through the remainder of this quarter with an agreement finalized by the end of the 4th quarter.
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