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Dematco, Inc. Announces Licensing Agreement
Apr 14, 2010 (05:04 PM EDT)
ENCINO, Calif., April 14 /PRNewswire-FirstCall/ -- Dematco, Inc. (OTC Bulletin Board: DMATE) reports InSetCo Plc ("InSetCo") announces that it has entered into a licensing agreement with Dematco, Inc. ("Dematco"). Pursuant to the business strategy set out in the InSetCo circular to InSetCo shareholders, Dematco has entered into an agreement whereby it has agreed to grant InSetCo an exclusive non-transferable license for the use of the Life Insurance Solver Application ("the License"), a range of products developed by Dematco for creating and trading derivative products based on life insurance products.
Dematco is engaged in the business of dematerializing or converting insurance instruments from paper form to electronic form. The Company specializes in hitherto untraded or illiquid paper instruments allowing them to be traded electronically on exchanges or exchange platforms on a peer to peer basis.
The License provides for InSetCo to pay to Dematco 5% of any income arising to InSetCo from the use of such know-how and products. In addition, 50% of the net profits before taxation arising from the use of the Dematco know-how and product range, less the 5% license fee less any overhead expenditure relating to such use, where such overhead expenditure is limited to a maximum of 20% of any such income arising.
InSetCo has identified target users of such investment instruments and will devise further applications and products from senior life settlements and other insurance assets.
Mr. Chuck Woodworth, director of InSetCo, who has been active in creating investment products from insurance policies for several years stated, "The Board believes that there is an increasing demand for investment products developed from insurance assets and that demand is spreading worldwide. I have known Dematco for the past two years and have watched the development of their new instruments with keen interest and believe that being able to utilize the Dematco know-how and product range provides a real and immediate opportunity for InSetCo. I look forward to developing a stronger relationship with Dematco over the coming months."
Mr. Robert Stevens, Chairman and CEO of Dematco commented, "I am delighted to have entered into the agreement with InSetCo as it enables Dematco's investment ideas and products to gain wider recognition."
About Dematco, Inc.
Dematco, Inc. is engaged in the business of dematerializing or converting financial instruments from paper form to electronic form. The Company specializes in hitherto untraded or untradeable paper instruments allowing them to be traded electronically on exchanges or exchange platforms on a peer to peer basis. www.dematcoinc.com
Forward Looking Statement
This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the failure to meet schedule, or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, and the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.
SOURCE Dematco, Inc.