CCP Technologies enters strategic joint venture with US-based Koolmax

CCP Technologies ASX CT1 joint venture Koolmax White Tiger
The joint venture entity, White Tiger Inc., provides CCP with access to new clients, distribution channels and an experienced team in the US market.

CCP Technologies (ASX: CT1) has geared up to extend its market reach in the US after its subsidiary, CCP Network North America, signed a joint-venture agreement with US-based Koolmax Monitoring Technology.

The backstory preceding the deal stems from the fact that Koolmax has been seeking to expand the capability of its existing operations for some time, including the introduction of CCP’s monitoring technology as a means of extending of what the company is able to offer to its customers.

The JV is expected to provide CCP with access to new clients, distribution channels and an experienced team in the US market.

Speaking exclusively with Small Caps, CCP Technologies CEO Michael White said that “our deal with Koolmax reflects our desire to commercialise one of the most well-established supply-chain management markets in the world. As a developed country with high health and safety standards, the United States is a superb opportunity for us to keep rolling out our technology and demonstrate that it can significantly reduce wastage throughout the supply chain.”

Under the agreement, CCP will subscribe for 50% of the White Tiger JV entity for $1 and participate as a 50% shareholder. Koolmax will retain the right to subscribe for equity in CCP over three tranches subject to achieving the following milestones:

  • Koolmax will have the right to buy 24 million shares if White Tiger’s net revenue exceeds US$250,000 in first 6 months,
  • Koolmax will have the right to buy a further 25 million shares if White Tiger’s net revenue exceeds US$500,000 in first 12 months;
  • Koolmax will have the right to buy 37.5 million shares if White Tiger’s net revenue exceeds US$875,000 in first 18 months.

CCP has also confirmed that an “at-risk incentive program” is expected to drive the joint venture’s net revenue and that if milestones are met, Koolmax could subscribe up to as many as 86 million shares in CCP, “which has the potential of delivering at least $1.75 million of new capital” into the company, according to CCP.

Koolmax opts for CCP Technologies

Koolmax has been tasked with installing filters into several major casinos in Las Vegas including the Bellagio, MGM Grand, the Cosmopolitan, and has been actively seeking a “reliable cost-effective monitoring solution” to complement the sale of its products across the US, according to Koolmax director, Gerardo Colucci.

“For some time, we have been seeking a reliable cost-effective monitoring solution to complement the sale of our products. By providing our customers with access to real-time data and diagnostics, the performance improvements derived from the use of our filters becomes clear. CCP’s solution provides the IoT platform for monitoring temperature, humidity, door events and power consumption that we have been looking for,” added Mr Colucci.

He added that “it’s by far the most advanced system we have ever seen.”

The deal means CCP can extend the reach of its products into the US and according to CCP CEO Michael White, will establish a business model which will support accelerated growth into the US market.

CCP will start its JV with Koolmax “with immediate sales and a substantial sales pipeline” that is expected to drive revenues going into year end.

Under the agreement, the new JV entity will be called White Tiger, to offer a bundled solution combining White Tiger Filters with the CCP Monitoring Solution. Both parties have agreed to contribute specific customers to this entity with initial customer contracts valued at US$71,000 (A$97,000).

Why White Tiger

White Tiger filters disrupt traditional humidity and temperature control solutions in all refrigeration environments through a unique holistic model in support of maximising energy saving, equipment longevity, product shelf life, operational profitability and minimising carbon footprint.

According to CCP, its filters deploy a patented nano-technology “filter medium”, which is supplied in the form of food grade bags.

The filter medium is an activated endothermic reactor material infused with EPA certified fungicide and antimicrobial additives. The filters are fitted inside walk-in coolers and freezers below behind the circulation fans.

As warm air passes through White Tiger filters, they absorb and bind excess moisture, microbes (such as mould, bacteria, and viruses) and gases (including ammonia and ethylene) releasing cold ‘cleansed’ air.

This has the effect of ‘cleansing’ the air which extends the shelf-life of perishable foods and improves refrigeration performance, stated CCP.

“On the back of our growing customer base in Nevada and California, the JV establishes a business model which will support accelerated growth into the US market. Armed with a unique bundled solution and a compelling ROI, we expect our experienced team will establish a trend of strong sales growth in the short term,” added Mr White.

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