SYDNEY, AUSTRALIA: Nanollose Limited (ASX: NC6), a leading bio-materials company commercialising scalable technology to create fibres and fabrics with minimal environmental impact, has entered into a binding memorandum of understanding (“MOU”) with one of the world’s largest fashion retailers, Industria de Diseño Textil, S.A. (“INDITEX”).
INDITEX is a public company listed on the stock exchanges of Madrid, Barcelona, Bilbao and Valencia, and on the Automated Quotation System.
With numerous brands, including Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home, INDITEX sells into 215 markets through its online platform, and has over 6,600 stores in 96 markets. www.inditex.com
Under the MOU, Nanollose and INDITEX have agreed to the non-exclusive delivery by Nanollose to INDITEX of samples of the Company’s Tree-Free (and/or blended) nullarbor lyocell resulting from the Company’s current pilot program with Birla Cellulose.
During the pilot phase of product development, Nanollose will work with INDITEX, supplying samples of various materials for testing and prototyping, with the view to Nanollose gaining valuable commercial feedback, whilst INDITEX are allowed early access to the Company’s materials to determine the potential for use in their various brands.
Initial samples of the materials will be supplied to INDITEX at no cost. Subsequent larger quantities of the materials will be supplied at a price to be mutually agreed at the time based on factors such as the percentage of microbial cellulose in the fibre, whether it is supplied as fibre, yarn or fabric, and any costs associated with dyeing and finishing.
Nanollose may cease providing materials to INDITEX, and INDITEX may request to cease receiving materials by giving at least 5 days’ notice to the other party.
Where, based on the outcome of the activities contemplated by the MOU, the parties wish to extend the relationship beyond the scope contemplated, the parties have undertaken to agree in good faith the terms and conditions that will govern that relationship.
The MOU otherwise contains terms and conditions considered standard for an agreement of this nature.
This MOU with INDITEX is indicative of the significant interest and demand for sustainable solutions in the fashion and textile industry, and the willingness and commitment of industry leaders such as INDITEX to seek out and support the sustainable innovations that Nanollose has to offer.