ItN Nanovation AG, specialist in nanoceramic products used in a wide range of applications including filtering systems and coatings, has inked a joint venture that will see its ceramic flat filter membrane technology (“CFM System”) marketed in Saudi Arabia.
ItN Nanovation AG is a portfolio company of Nanostart AG (OTCQX:NASRY, ETR:NNS), a Frankfurt headquartered investment company which recently completed an ADR program and admission to the OTCQX market in New York. Nanostart specialises in providing venture capital to cleantech, life sciences and electronics focused companies.
The joint venture announced today will see itN Nanovation receive US$2.35 million upfront; approximately two-thirds of this capital will be used to acquire a 17.5% stake in a new company to be named Saudi Water Nanovation. The new company will also receive capital from a Saudi Arabian investor in Jeddah and a consortium of German industrial investors. itN Nanovation’s stake in the new company will rise to 40% by 2014, and will receive royalties on income.
The new Saudi based company will produce and sell nanoceramic filter systems and accessories in Saudi Arabia, but Nanostart AG noted that the joint venture model could be expanded into other countries. Production may start as early at 2011, with full output expected to be accomplished in 2013.
ItN Nanovation’s ceramic flat filter membranes are a brand new solution for filtering systems in the water recycling, drinking water supply and surface water processing sectors. The need for such solutions is particularly high in the Middle East.