TORONTO—A Toronto-based thermoplastics firm has sold its Michigan subsidiary and will licence its automotive intellectual property portfolio as part of a US$1.3-million deal.
According to Innovative Composites International Inc. (ICI), it has agreed to the sale of its Sault Ste. Marie, Mich., subsidiary, Innovative Composites, Inc., and licence to its automotive intellectual property, to an undisclosed buyer.
The deal includes all the machinery and equipment from the Michigan plant, as well as supplier and customer contacts and certain licences, permits and approvals.
The intellectual property licence granted to the buyer is subject to royalty payments equal to 2.5 per cent of sales of products that use ICI’s intellectual property.
ICI said it will use the proceeds of the sale to pay down debt.
“We are pleased about what this transaction means for us,” ICI chief executive Mark Rivers said in a release.
“It is continued validation of the value and uniqueness of our technology and provides us with much needed working capital, allowing us to focus our efforts, costs and operations in one location, which is appropriate for our current development stage.”
The company builds prefab housing, shelters and containers using recyclable materials.