Current Technology has expanded significantly the scope of its negotiations with Jaseon Olcese, President and Chief Executive Officer of Strategic Laser & MedSpa, LLC ("Strategic Laser").
Rather than a focus on developing a relationship with one or more specific customers, the objective is to rollout Current Technology's proprietary CTG (CosmeticTrichoGenesis) Mark 5 in the United States nationwide on a revenue sharing basis to selected salons and spas.
"Revenue sharing is the optimal approach to maximize shareholder value," states CEO Robert Kramer, "as it has the potential to significantly increase the amount of revenue the company may earn from a particular unit."
Historically, revenue in the United States has been generated primarily from a combination of the sale of units to distributors and the Technology Use Fees ("TUF" or royalty) charged on each use. Although the TUF may vary, it typically represents 5% to 10% of the ultimate retail price charged to the end user.
The financial model being negotiated with Jason Olcese would involve the sale at cost by Current Technology of CTG Mark 5s to Strategic Laser. In turn, Strategic Laser would place the units in high traffic salon and spa locations throughout the United States. Current Technology would earn a TUF of 30% of the price charged to the customer.
"We are in the process of developing the plan for the necessary infrastructure to successfully launch into the US market," states Strategic Laser's Jason Olcese. "I have shared my vision with Current Technology's executives for the national launch into the US market and we are in the process of finalizing negotiations to make this vision come to life."
"Jason has the vision, marketing talent and financial ability to achieve our goal of making CTG Mark 5 a 'must have' part of the vibrant beauty and spa industry in the United States," continues Kramer.
In order to achieve the vision of a national roll out on a revenue sharing basis in the United States, certain legacy distribution agreements had to be re-negotiated. To that end Current Technology on December 23, 2005 agreed to issue 1,400,000 restricted common shares as consideration for the termination of all exclusive distribution agreements in the United States. In addition, the pilot distributorship agreement with p6 Inc. announced September 29, 2005 has terminated.
"We are now in a position to move forward throughout the United States," continues Kramer. "We are reviewing various financial models with Jason, based on an initial placement of between 120 and 200 CTG Mark 5 units in prime markets. We are obviously very excited about this opportunity and look forward to the successful conclusion of negotiations and placement of the initial order in early 2006."
ABOUT CURRENT TECHNOLOGY CORPORATION
Current Technology Corporation remains committed to developing its non- invasive pulsed electro-stimulation technology.
This technology has enabled the company to develop two separate and distinct products emanating from the TrichoGenesis platform, thus far, that offer help for those concerned with their hair: ElectroTrichoGenesis (ETG) and CosmeticTrichoGenesis (CTG). Current Technology holds patents throughout the world and has spent over US $15 million in research and development of its TrichoGenesis platform and systems. The patents encompass the technology, methodology and design of the Company's products.
Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management.
Investors are cautioned that any such forward- looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this news release.
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