Wednesday, February 24, 2010

Converted Organics Signs Licensing Agreement with MassOrganics for New Manufacturing Facility

"BOSTON--(BUSINESS WIRE)--Converted Organics Inc. (NASDAQ:COIN) announced today that it has entered into a license agreement with MassOrganics I, LLC regarding the use of Converted Organics’ proprietary system for the manufacture of organic fertilizer products. MassOrganics I will install and operate the system at a new manufacturing facility to be constructed at The Sutton Commerce Park in Sutton, Massachusetts. In March, 2009 Converted Organics received a permit from the Commonwealth of Massachusetts' Department of Environmental Protection to operate a food waste processing facility at the site.

As part of the agreement, MassOrganics I will pay a licensing fee to Converted Organics of $1,000,000 and a royalty of $20 per ton of fertilizer sold from the facility. Converted Organics has agreed to give MassOrganics I the right of first refusal for the development of similar facilities in Maine, Connecticut, New Hampshire, Rhode Island, Massachusetts, and Vermont."

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