Innovative Composites International Inc. (Toronto, Ontario, Canada), a producer of proprietary engineered composite products, announced on Sept. 12 that it has agreed to a spin-off of its fire retardant (FR) technology assets in a standalone company subject to the completion of the definitive agreements and the successful completion of an external equity offering. The standalone company will have Ilja Troitschanski, the company’s former CFO, as president.
“The FR technology holds great potential but we believe that it requires dedicated financial and management resources to efficiently advance its commercialization,” says Terry Ball, president and CEO of ICI. “We believe this spinoff provides the best opportunity to successfully commercialize these assets in the shortest period of time while ensuring that ICI shareholders share in the potential success of the FR technology without taxing the company’s resources.”
The FR assets consist of intellectual property related to three primary FR markets: forest fires, polymers and textiles. Under the terms of the spinoff, ICI would roll the FR related assets into a new corporation (Newco) and Troitschanski will undertake to raise up to $1 million in equity financing. The new equity investors will receive a minority interest in Newco and ICI will maintain a majority interest and receive a royalty on sales generated by Newco going forward.
This spinoff is intended to close in October 2012, subject to a successful capital raise as well as other customary conditions for a transaction of this sort.
Innovative Composites International Inc. is an engineering and manufacturing company whose goal is to use its proprietary “green” composite materials and building systems to provide innovative, engineered product solutions to markets that include prefabricated modular housing, shelters and containers, and industrial applications.