Ecology Coatings Inc., a leader in the discovery and development of nanotechnology-enabled, ultraviolet-curable advanced coatings, today announced that it has signed a collaboration agreement with a major tobacco company for the application of its technology for producing "fire standard compliant" (FSC) cigarettes.
FSC cigarettes are designed to meet government reduced ignition propensity testing standards. Ecology has filed a patent application with the U.S. Patent and Trademark Office for its technology.
The agreement establishes the framework under which the two companies plan to test and commercialize FSC cigarettes using Ecology Coatings' unique paper coating technology.
Milestone payments will be made to Ecology Coatings as predefined development and testing milestones are met. If those payments are met, royalty payments will commence with market introduction and product sales.
"The goal of our collaboration with this tobacco company is to meet government requirements for FSC cigarettes while at the same time allowing the manufacturer to produce at full production speeds," said Ecology Coatings CEO Bob Crockett. "Our solution has the potential to allow manufacturers to be self-reliant and eliminate the need for specialty paper. Our uniqueness resides in our ability to cure UV coatings at high speeds at substantial cost savings."
Crockett continued, "This application is an outgrowth of our patented disruptive paper barrier coating technologies. By designing the solution as part of the manufacturing process, manufacturers can reduce their costs. We believe this is an exciting opportunity that could be very rewarding to our company and its shareholders."