On August 30, 2010, Hybrid Coating Technologies Inc. consummated an August
16, 2010 Stock Purchase Agreement (the “Stock Purchase Agreement”)
with Nanotech Industries International Inc., (“Nanotech”) a Nevada
corporation located in Daly City, California. A previous January 31, 2010 agreement
with Nanotech Industries Inc. (“NTI”), a related party of Nanotech,
was terminated on August 16, 2010 prior to its effectiveness.
The Company is an early stage company and has only just begun to implement
its business plan. The likelihood of success of the Company must be considered
in light of the expenses, complications and delays frequently encountered in
connection with the establishment and expansion of new business and the competitive
environment in which the Company will operate. The Companys long-term viability,
profitability and growth will depend upon successful commercialization of the
Nanotech Products and the development and commercialization of new products
and services relative to its business plan. As an early stage company, the Company
has little or no relevant operating history upon which an evaluation of its
performance can be made. Such performance must be considered in light of the
risks, expenses and difficulties frequently encountered in establishing new
products, services and markets.
The Company’s business model is based on a two-tier strategy, which includes
direct sales and licensing. The Company’s ultimate goal is to license
its proprietary Green Polyurethane™ formulation to national and/or global
coatings formulators and then focus on rolling out the commercialization of
other Green Polyurethane™ applications such as adhesives and sealants.
In order to achieve this, the Company is proving the validity of its products
through direct sales and is therefore targeting large distributors and multiple
client bases. The Company intends to focus within the Coatings, Adhesives, Sealants
and Elastomers (“C.A.S.E.”) segment specifically for large industrial
and commercial coatings applications where Green Polyurethane™ has a natural
competitive advantage over other polyurethane ("PU") and epoxy coatings
due to its superior chemical resistance and environmentally safe properties
with reduced health risks.
As a result of the Nanotech Acquisition, Nanotech is now a wholly owned subsidiary
of the Company. The Company intends to pursue the business of its Nanotech subsidiary
and assume and execute Nanotechs business plan as its sole business. (See “Incorporation
and Business of Nanotech” below).
The products manufactured and sold by the Company (“Nanotech Products”)
comprise the following:
coatings and raw binder ingredients comprised of Green Polyurethane™
Monolithic Floor Coating and Green Polyurethane™ Binder and hereinafter
referred to as “Coating Products”.
sealants and adhesives comprised of Green Polyurethane™ and hereinafter
referred to as “Sealant Products”.
polyurethane foam for the textile industry in addition to environmentally
safe coatings.
spray foam insulation
polyurethane foam packaging
synthetic leather, sealants and adhesives (“Added Applications”)
The Company was granted the right to manufacture and sell the Nanotech Products
pursuant to an agreement (“Licensing Agreement”) entered into between
the Company and Nanotech Industries Inc. (“NTI”), the holder of
the proprietary rights to the license and intellectual property required for
the manufacturing of the Nanotech Products. The Nanotech Products will target
the coatings, adhesives, sealants and elastomers (“C.A.S.E.”) market
in North America, Europe and Russian Territory (including the Russian Federation,
Belorussia, Kazakhstan Republic) with an option to sell in Asia and the rest
of the world pursuant to the terms of the Licensing Agreement.
