Fibre optic screens manufacturer Advance Display Technologies of Denver, Colorado, has signed a licence agreement with Mitsubishi Rayon Co of Tokyo under which the Japanese company will pay a minimum $5.1m for exclusive rights to manufacture and market Advance Display’s Fibervision display board in Japan for the next 11 years, and non-exclusive manufacturing and marketing rights outside North America – and for take an equity stake in Advance. Mitsubishi is paying $2.5m for the licence, and $1.2m for 600,000 shares of newly issued, restricted Advance stock, and gets an option to buy an additional 150,000 shares of restricted stock for $2 per share by the end of next month. Advance will also get royalties based on Mitsubishi’s sales, amounting to a minimum $400,000, and technological or manufacturing improvements made to FiberVision will be shared by the two companies, but there is no sharing on applications in home television. Mitsubishi is also buying a FiberVision display board for indoor applications for $700,000 and Advance will incorporate its 20 watt laser projector in the system, shipping it in the second quarter, having already supplied a full manufacturing line this quarter.
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