SARNIA, Ontario, Oct. 26, 2011 /PRNewswire/ -- Megola Inc. (OTCBB:MGON), a leading environmental solution provider, announces that it has signed a Memorandum of Understanding (MOU) with High Point Enterprises Co Ltd of the People's Republic of China (PRC) to license the manufacturing of Megola's Fire Inhibitor Coating (FIC) and for the distribution rights in PRC and for any export goods leaving the PRC.
"It is not a secret that a vast majority of products are being imported into North America and elsewhere from the Asian continent. These imported goods need to meet specific North America and European fire standards which our environmentally friendly fire inhibitor can offer and out perform conventional harmful fire retardants. Having the opportunity now to treat these products at the manufacturing sites in China and to have a company in Asia assisting on the manufacturing and distribution can only be a positive outcome for Megola's future sales growth. Megola will continue blending the Fire Inhibitor Coating in North America for specific target industries we have been working on such as the building supply industries," states Joel Gardner, CEO of Megola Inc.
KEY ITEMS IN MOU
HPE and Megola are testing various fabric types for specific fire test criteria, certifications.
HPE will initially purchase FIC product from Megola under a profit sharing arrangement until formal agreement and blending facility is established.
HPE shall determine the pricing for FIC sales with assistance from Megola.
HPE will invoice customers for the FIC products and will pay the profit-sharing
Payment less any outstanding testing costs.
HPE will provide Megola with regular updates on testing and sales activities at the request of the management of Megola.
All technical knowledge, testing results and certifications initiated by HPE will become the joint property of HPE and Megola for the advancement of the commercialization of the FIC line of products. Transfer or disclosure of any of the knowledge or certifications obtained to any third party requires the written consent of both Megola and HPE.
FIC product samples for testing purposes will be provided to HPE or their prospective customers on a "sample" cost plus shipping basis.
High Point Enterprises Co Ltd is a corporation in the Guangdong Province, having its principal place of business at Yi Sha Management District, Shaitian Town, Dongguan, PRC 523998. HPE is the manufacturer of the cozy mattress sofa bed and utilizes partnerships and distributors to sell their product lines.
Unlike many current fire retardant solutions, which only delay the start of fires, FIC is a total fire inhibitor, rendering all natural materials and many synthetics non-flammable.
Water-based, non-toxic, and environmentally-friendly, FIC is a safe alternative to current fire retardant chemicals.
For more information on Megola Inc., please visit www.megola.com.
Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.
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SOURCE Megola Inc.