Patriot One and Nano-Bio have signed a joint venture for a chemical analysis technology with multi-sensor covert threat detection capability.
Announced on Tuesday (January 29), Patriot One have entered into a binding operating agreement for the purpose of a JV with Nano-Bio Detection Systems (Nano-Bio), a company that holds licensed technology capable of detecting airborne molecules.
Nano-Bio obtained its licensed technology from the University of Texas, with the suggested applications including remote detection of explosive compounds and related substances vital to threat detection.
As part of the transaction, Nano-Bio granted the JV to Patriot One to develop and commercialize the technology for applications related to defense, security, detection of prohibited substance and law enforcement. The decision to grant the license will result as an initial contribution for a 50 percent interest in the JV from Nano-Bio.
Patriot One is set to pay US$3 million to Nano-Bio in three stages: the first US$1 million will be paid following the execution of agreement, The second US$1 million payment will be on or before March 2, 2019 and the final amount will be paid upon the completion by the JV of transactions resulting in revenue more than US$1 million.
The companies highlighted in the announcement that the technology is capable of operating as a standalone solution or that it could be integrated with related threat detection systems. The technology is said to have the ability to function covertly in non-invasive deployments.
“Our company has been searching for and evaluating innovations in threat detection for inclusion in our multi-sensor PATSCAN platform and this chemical threat detection technology is truly game-changing,” Martin Cronin, CEO of Patriot One, said in the release.
It was noted that the technology, which has multiple pending patents, is designed to detect airborne threats with a parts-per-trillion sensitivity which makes it possible to identify explosives, chemical agents and narcotics.
“My service in the US military taught me that forewarned is forearmed, and I expect this stand-off threat detection capability will be a life saver for our general public and military personnel,” Craig Micklich, founding CEO of Nano-Bio, said in the release.
The technology is said to have standoff mass casualty threat detection capability for both military and civilian applications.
Further, Patriot One would fund the initial research and development expenses subject to the approval of its board and a mutually agreed option with Nano-Bio, which might see Nano-Bio increase its interest in JV to 70 percent within 18 months.
If Nano-Bio exercises this option, it would be in consideration of a payment to Patriot One equal to 100 percent of all development expenses with the future obligations on the two companies being on a pro rata basis.
“I have no doubt that it will save lives both on the battlefield and in our cities,” Cronin said.
Following the announcement, shares of Patriot One were up 1.43 percent and closed the trading session on Tuesday at C$2.13. The stock has a “Buy” ranking on TradingView with 17 verticals in favor, nine in neutral and two against.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.