BOULDER CITY, Nev. (July 20, 2006) — Amerityre Corp. has licensed a South Korean firm, Flatfree Inc., to make and market closed-cell polyurethane foam tires for bicycles, wheelchairs, wheelbarrows and handtrucks for Asian markets.
Under the agreement, Flatfree-Korea will pay an annual license fee and purchase manufacturing equipment and chemical systems from the U.S. company, Amerityre said. The license for South Korea is exclusive provided Flatfree-Korea makes minimum license payments to Amerityre of $100,000 a year over 10 years, Amerityre said.
Boulder City-based Amerityre will sell the Korean company a $1 million equipment package and will help with installation and setup, training and manufacturing support. The U.S. firm said it also will sell Flatfree-Korea the proprietary chemical systems necessary for the production of Amerityre's closed-cell polyurethane foam tires, once the equipment is installed—which is expected to be in early 2007.