HeiQ Viroblock Agreement with ICP

HeiQ (LSE:HEIQ), an established global brand in materials and textile innovation which operates in high-growth markets, is pleased to announce that it has signed an Exclusive Licence and Chemicals Supply Agreement with ICP Industrial Inc, a division of ICP Group (“ICP”), the global leader in the development, application, and technical support of innovative thin film coatings which are applied to packaging used by the FMCG, pharmaceuticals and medical sectors.

The two companies have signed a five year contract (US$8m in the first two years, at which point the contract is subject to renewal) which is expected to deliver US$30m of royalty revenue to the Company (“the Minimum Exclusive Requirement”) in exchange for exclusive worldwide rights to apply HeiQ Viroblock to coatings for printing processes such as commercial print, food, beverage and pharma packaging. ICP will market its products with the HeiQ Viroblock technology and trademarks to its downstream customers, which manufacture packaging products for some of the world’s largest consumer brands. This will enable brand owners to market products packaged in materials with antimicrobial properties to consumers. The two companies are currently completing the product development, due to be finalized at the latest by 1st August 2021, following which the exclusivity period begins. HeiQ will supply ICP with HeiQ Viroblock, an antimicrobial technology proven to destroy over 99.99% of infectious viruses and bacteria within minutes, and will receive a percentage of ICP’s net sales in the form of royalties, in line with its strategy to grow its high margin royalty and licensing business. The partnership enables HeiQ to bring its market leading antimicrobials and other HeiQ technologies into several new industry fields served by ICP.

HeiQ co-founder and CEO Carlo Centonze said:

“This multi-year agreement with a global print and packaging coating leader builds on our recent contract to apply HeiQ Viroblock to paint, demonstrating that HeiQ Viroblock and antimicrobial technology is becoming mainstream for all materials that we touch in our daily lives. It is with great pleasure that we team up with ICP Industrial Inc, a global leader which provides the print and packaging industry with advanced coating technologies. It is of paramount importance given that the global pandemic has shown that viruses can remain infectious on paper and cardboard for several days. These recent agreements relating to HeiQ Viroblock being adopted by businesses outside of the textile industry also highlight that our award-winning innovation has entered a new phase in its lifecycle and that the brand equity we have built as an innovation leader is delivering meaningful returns. Subject to a successful trial period, we believe that this royalty arrangement has the potential to deliver strong, high margin sales for HeiQ and to strengthen our brand equity significantly, through uptake by ICP’s blue chip client base.”

ICP Industrial’s Division President Paul Grzebielucha said:

“We are excited to offer this new innovative life-saving technology to the print world. We have global reach under our brands of Nicoat, MinusNine and Hitech Coatings to provide this protection on billions of printed surfaces per year. This HeiQ Viroblock game changing technology for our industry and society has proven to be a superior solution that is currently available in the marketplace. HeiQ products have proven efficacy in terms of destroying infectious viruses in minutes rather than hours with an effective rate of 99.95%. ICP Industrial has always provided innovative solutions to the graphic arts and packaging segments while maintaining the highest level of customer and technical service in the industry. ICP Industrial is very excited about the partnership with HeiQ bringing this technology to market providing a safer touch environment to the world.”

Below is an interview with HeiQ’s founders, filmed at its IPO in December 2020