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Zagg, a producer of mobile electronics accessories including the invisibleSHIELD and Zaggaudio brands, announced an agreement with HzO for the exclusive marketing rights to the "Golden Shellback" - now referred to as HzO - technology.
The HzO technology is a molecular coating process that protects consumer electronics against damage caused by water and moisture exposure. Zagg said this technology will save gadgets from fatal exposure to water and other liquids, which is the leading cause of lost function in electronics.
Zagg explained that the HzO technology used for consumer electronics produces a vacuum deposited film that is water repellent, nonflammable, has low toxicity, and allows for electricity conduction under the thin film coating. When applied to clean, moisture free surfaces such as plastic, metal, or glass, the coating is transparent with excellent water repellence and anti-corrosion properties. The coating also has an ability to repel oils, synthetic fluids, hazardous materials, dust, dirt, and water based solutions.
"HzO is a game changing technology and the next logical step for Zagg," said Robert G. Pedersen II, President and CEO of Zagg. "Our core competency is protecting the exterior of gadgets, and this now allows us to also provide protection to the inside of the device. The total solution provided by HzO and the invisibleSHIELD aligns perfectly with the brand identification for Zagg."
Zagg has invested $1 million initially and will invest another $2 million in February 2010 for a minority interest in Series A Preferred Stock of HzO, a Delaware corporation, as well as acquiring worldwide exclusive marketing rights. Zagg holds a first right of refusal to acquire the rest of the ownership of HzO and its intellectual properties.
"The HzO technology helps to protect Zagg from other companies pursuing protective coatings for gadgets," said Pedersen. "Zagg is already in negotiations with major manufacturers in the electronics industry regarding HzO technology."
With the exclusive marketing rights, Zagg plans to sublicense the technology to consumer electronics manufacturers around the world. The HzO technology is anticipated for roll out to consumers in 2010. HzO will pursue multiple market segments to fulfill the needs of this water repellent technology across the spectrum of other applications in addition to consumer electronics.
