OCT. 29–BELMONT, MA–Kronos Air Technologies, Inc., a wholly owned subsidiary of Kronos Advanced Technologies, Inc. and HoMedics USA, Inc. has entered into a multiyear, multi-million-dollar agreement that will bring proprietary technology to the consumer.
The agreement provides for exclusive North American, Australian and New Zealand retail distribution rights for next generation consumer air movement and purification products based on patented Kronos air movement system, a silent, non-turbulent, and energy-efficient system that ideal for air circulation, cleaning and odor removal in family rooms, bedrooms, bathrooms and kitchens.
The initial term of the agreement is three and one half years with the option to extend the agreement for six additional years. Kronos will be compensated through an initial royalty payment and ongoing quarterly royalty payments based on a percentage of sales. HoMedics will pay minimum royalty payments of at least $2 million during the initial term and on-going royalty payments to extend the agreement. Kronos will retain full rights to all of its intellectual property.
HoMedics commitment includes a multi-million-dollar marketing and advertising campaign to promote the Kronos -based product line. The products will be manufactured and distributed by HoMedics, which distributes Wal-Mart, Home Depot, Sears, Bed Bath & Beyond, and Linens ‘N Things. Kronos will manufacture and provide HoMedics with Kronos’ proprietary electronics.
“We believe that through the combination of HoMedics marketing savvy, proven sales capability and distribution reach with Kronos’ proprietary air movement and purification technology, HoMedics and Kronos will be well positioned to bring a comprehensive air purification product line to the consumer market,” says Daniel R. Dwight, president of Kronos Air Technologies.
Ron Ferber, president of HoMedics agrees, saying, “A strong air movement and purification market exists today and will certainly grow exponentially as air quality continues to decline and consumers continue taking charge of their health.”