EarthShell Corporation (OTCBB:ERTH), manufacturers of biodegradable food service packaging, has signed ReNewable Products, Inc. (RPI) as its newest licensee. The concept of developing RPI, as a new entity, was the result of collaboration between Thompson Street Capital. RPI, as part of TSCP and with funding from them, has placed a binding purchase order with Detroit Tool & Engineering (DTE) for an initial 16 equipment modules. In turn, EarthShell Corp. and RPI have signed a 20% royalty bearing exclusive license which allows RPI to produce EarthShell’s environmentally preferable plates and bowls for the important and growing U.S. Mass Merchandising & Retail markets as well as all government agencies. In their market space, RPI will be targeting EarthShell plates and bowls to customers such as Wal-Mart, Costco, Target, K-Mart, the Interior Department, Environmental Protection Agency, the Department of Defense and many other valuable and strategic customers to include government funded schools, colleges and universities.
As part of more detailed plans to begin shipping EarthShell plates and bowls this quarter, DTE, a licensed EarthShell equipment producer, will lease 40,000 sq. ft of manufacturing space, in a separate part of its facilities in Lebanon, Missouri, to RPI. In so doing, the companies are cooperating to facilitate ease of module installation & de-bug time and accelerate production timelines. Installation of the initial 16 modules is currently being completed and start up is planned on a phased in basis running through September. The first two modules are scheduled to be on line and shipping small initial quantities of plates and bowls this month. The area being leased will provide space for up to 32 manufacturing modules, warehousing of raw materials and finished inventory with the ability to accommodate the appropriate distribution requirements for excellent customer service. Go to market plans and market estimates for RPI will be provided in the near future by Russell Greer, President of RPI.
James A Cooper, co-founder of Thompson Street Capital Partners, stated, “Thompson Street is excited to play a major role in bringing EarthShell’s environmentally unique and biodegradable plate and bowl project to fruition. Our investment in DTE, as an EarthShell equipment supplier, has given us a unique and valuable understanding of the manufacturing process and business opportunity at hand.” Mr. Cooper added, “through RPI we are broadening our interests in EarthShell packaging and demonstrating our belief in its value to all customers and users of disposable packaging.”
Subject to achieving certain defined conditions or milestones, set forth by EarthShell, RPI, and TSCP, RPI may merge its operations into EarthShell at a time to be announced later. These milestones include completion of 16 manufacturing modules operating at agreed to levels of effectiveness, and RPI generating royalty income for EarthShell. If a merger is completed, RPI will exchange its assets and operations for 8 million shares of restricted EarthShell stock.
EarthShell Corporation is engaged in the licensing and commercialization of proprietary composite material technology for the manufacture of foodservice disposable packaging, including cups, plates, bowls, hinged-lid containers, and sandwich wraps. In addition to certain environmental characteristics, EarthShell Packaging is designed to be cost and performance competitive compared to other foodservice packaging materials.
EarthShell sandwich containers, plates, bowls and wraps are designed with the environment in mind. Developed over many years using a “life cycle inventory” and in consultation with leading environmental experts, EarthShell products reduce the environmental burdens of rigid food service packaging through the careful selection of raw materials, processes and suppliers. The products are made primarily from natural limestone and starch from potatoes, wheat or corn. The new packaging poses substantially fewer risks to wildlife than polystyrene foam packaging because it biodegrades when exposed to moisture in nature, physically disintegrates in water when crushed or broken, and can be composted in a commercial facility (where available) or in your backyard.
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