Shares digital

The Titan Wood subsidiary of Accsys Technologies (AXS:AIM) has signed a full licence deal with Al Rajhi to manufacture 150,000 cubic metres per year of Accsys’ branded hard wood product Accoya in all six Gulf Cooperation Council countries.

The terms of the agreement provide for technology fees and annual royalties. Al Rajhi has already paid an option fee of €150,000 and will make an immediate down payment of €2.9 million. Further fees will be paid subject to the timing and phasing of the construction period, with royalty payments starting following commercial production in 2010.

The exclusive deal is for a total of four years, although Al Rajhi holds the rights to increase this period. The news however did little for the company’s share price, which slipped 3% to €2.2.

Shares says: Although the shares have slipped lately, the potential remains strong and now is a good time to buy on weakness.

by: Rachel Robson