Vancouver, British Columbia – May 30, 2019 – Specialty Liquid Transportation Corp. (TSXV: SLT; OTCPK:SPQDF) (“SLT”) Is pleased to announce it signed a MOU with China based Qingdao LAF Packaging Co. LTD. (“LAF”) in which SLT will be licensing its IP, technology and trademark of its Big Red Flexitank to LAF and allow LAF to sell its Big Red Flexitank within Asia. In exchange, SLT will be receiving a royalty of approximately $50 per Flexitank on every Flexitank sold and will maintain the oversight over all quality. The contract includes a minimum guarantee of $250,000 to SLT in annual royalties in order to maintain the exclusivity and has a licensing fee of $100,000 after certain milestones are achieved.
“As announced in our news release, we are evolving our business model to include a vertical integration strategy where we directly acquire specific raw commodities that can be shipped using our proprietary flexitanks technology, resulting in cost savings of $2,000 – $3,000 per shipment over traditional shipping modalities, and then arrange for the sale and logistics of our own products” stated David Skriloff, CEO of SLT. “We felt that partnering with a premier manufacturer of flexitanks in China would be the most profitable method for growing the Asian market where our US manufactured flexitanks struggled to compete. This partnership will allow us to instantly generate cash flow for the Asia region of our business, and allow us to concentrate on our vertical integration model.”
“We are very excited to be able to manufacture and sell SLT’s Big Red Flexitank within Asia. We believe that SLT has the highest quality flexitank in the market and are looking forward to offering our Asian customers a top of the line flexitank”, said Mr. Fisher, founder and CEO of LAF.
About SLT: Specialty Liquid Transportation manufactures high-quality and safe bulk packing solutions for transport of non-hazardous liquid in the flexitank logistics industry. Its patented Big Red Flexitank and patent-pending Liquiride Flexitank enable customers to significantly reduce shipping costs, increase efficiency and minimize environmental impact.
About LAF: Qingdao LAF Packaging Co. Ltd. is a professional manufacturer of Flexitanks, Dry Bulk Container Liners and IBCs for Liquid and Dry products. LAF has successfully integrated R&D, production and sales & marketing into a formidable, quality-driven force competing on the international packaging market. LAF focuses on customers and realizes that “one-size does not fit all”. Therefore LAF provides a customized, professional, worldwide logistics solution and technical support according to clients’ specific requirements. LAF has invested in the most modern and efficient production facilities operated by highly trained and proficient employees with support from a top-class R&D team.
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The information in this news release includes certain information and statements about management’s view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to risks and uncertainties. Forward looking statements in this news release include, but are not limited to, the Company’s execution of its new business strategy, and expectations regarding sales of its proprietary flexi-tanks in the Asian market. Although the Company believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.