Monday, June 4, 2012

Visualant, Inc. (VSUL) and Sumitomo Precision Products Ink Joint Development Agreement for Commercialization of SPM Technology

Visualant, a company engaged in color-based identification and diagnostic solutions, today announced the signing of a suite of agreements with Sumitomo Precision Products Co., Ltd. (SPP) of Japan.

The agreements center on Visualant’s optical sensing and data capture technology, Spectral Pattern Matching (SPM), which Visualant develops and distributes through wholly owned subsidiary TransTech Systems Inc.

SPP, a publicly listed Japanese corporation, will invest US $2.25 million into Visualant in exchange for 17,307,693 shares of restricted common shares priced at $0.13 per share.

In addition, the companies have inked a one-year joint development agreement regarding the commercialization of Visualant’s SPM technology and a license agreement that names SPP as an exclusive license holder of the SPM technology in identified Asian territories. Per this arm of the agreement, SPP will pay Visualant an initial payment of US $1 million for the license agreement along with a running royalty for the license, which will be negotiated at the close of the joint development agreement.

“The investment by Sumitomo Precision Products is a significant milestone in the history of Visualant,” Visualant founder and CEO Ron Erickson stated in the press release. “SPP is a splendid partner. Pursuant to our Joint Development Agreement, we look forward to working with SPP to bring our Spectral Pattern Technology to the marketplace where we can provide elegant and efficient solutions in security and authentication, as well as medical, environmental and agricultural diagnostics.”

For more information visit www.visualant.net

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