New partner pledges $1 million over two months and completes first payment of $150,000
Los Angeles, CA and Hong Kong, China – December 3, 2015 –OriginClear Inc. (OTC/QB: OOIL), a leading provider of water treatment solutions, and its master licensee for China, OriginClear Hong Kong (OCHK), today announced that OCHK recently signed a binding Memorandum of Understanding (MOU) to launch a sales joint venture (JV) in the People’s Republic of China and the Republic of China (Taiwan).
The JV partner is Mr. Ming Xu, an inventor and owner of a ceramic materials factory in mainland China.
Under the MOU, Mr. Xu committed to payments totaling $1 million over two months to purchase the rights to the JV, and has already completed the first payment to OCHK of $150,000.
“I am very happy with the speed of commercialization in China,” said Riggs Eckelberry, OriginClear CEO. “Mr. Xu’s commitment to our JV, as well as his strict timeline to launch the manufacturing plant, demonstrate to us that the technology is really in demand. My congratulations to the whole OriginClear Technologies™ team for this achievement!”
Under the MOU, Mr. Xu and OCHK plan to form a joint venture in China, intended to be a licensee of OCHK. The JV will sell equipment using OriginClear technology for People’s Republic of China and Taiwan markets. The partners intend to name the company OriginClear (China) and the MOU calls for Xu Ming to transfer 25 percent of its ownership and profit share to OCHK, in addition to meeting a royalty schedule. Finally, the JV will continue the development of the China-based manufacturing capability.
“While we continue to set up the manufacturing operation, we are demonstrating Electro Water Separation™ throughout China for specialty waste water treatment and algae harvesting,” said ‘JL’ Kindler, President of OriginClear Technologies, and Managing Director of OriginClear (Hong Kong). “We believe China is ripe for advanced water solutions, as it has reportedly budgeted $330 billion to address the problem, and Mr. Xu’s commitment to OriginClear will help us reach this fast-growing demand.”
To enable Mr. Xu’s participation, OCHK agreed to release the previously-announced Chinese precision manufacturer’s binding investment schedule in OCHK and to cancel all rights initially granted to that investor. The parties have agreed to convert the investor’s first payment of $100,000, made in September, into restricted shares in OriginClear, Inc. With this conversion, OriginClear (Hong Kong) will once again be a wholly-owned subsidiary of OriginClear, Inc.