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GREAT OPPORTUNITY FOR LARGE PROFITS

IMPROVE THE ENVIRONMENT BY NON-TOXIC FIRE/FLAME RETARDANTS
FOR FUTURE GENERATIONS





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OVERVIEW

Trulstech ("the Company") (incorporated in Sweden & Australia) has developed (through its associated company Biomimetic Technology Ltd) all the world-wide rights in an exciting, multi-award winning and extremely environmentally friendly "family" of non-toxic fire/flame retardants for application to various commercial products/materials.
The brand name of the non-toxic fire/flame retardants is MHE®.

The Company has decided to now sell these world-wide rights to suitable manufacturers so that the Company can concentrate on its core business of high-tech product-development (rather than manufacturing, marketing and selling products).

The national rights limited to Europe (including the former USSR) were sold in July, 2011.

This Executive Summary has been prepared by the Company as a "preliminary document" for parties who may be
potentially interested in purchasing these rights as they relate to the rest of the world (i.e. outside Europe, and the countries which now represent the former USSR).


THE PRODUCT

"Molecular Heat Eater®" [MHE®] comprises complete outstanding family of cost-effective, non-toxic, eco-friendly and biodegradable fire/flame retardant products, developed on low carbon sustainability innovation technology.

Patents have been applied for throughout the world.

Most fire/flame retardants in use today contain many harmful chemicals that escape into (and migrate through) and pollute the environment. Upon combustion these harmful chemicals release toxic gases that can kill or cause severe respiratory injuries to humans. These chemicals will frequently have a negative impact on human genes which will affect future generations.

This is NOT the case with "Molecular Heat Eater®" which family of fire retardants only contain food grade chemicals (in approved quantities and concentrations) of a type found in daily foodstuffs, e.g., grapes, fruit and bread.
The products are based on foodstuffs which have been consumed by humans for thousands of years without any negative impact on health or environment.

The fire/flame retardants are marketed under the brand name MHE®

METHOD - THE TECHNICAL VALUE

Biomimicry or biomimetics comes from the Greek words bios, meaning life, and mimesis, meaning to imitate. In other words, it is the adoption of nature and its models, systems, processes, and elements to adapt to solve human problems.
MHE® is a prime example of Biomimetics.

By the application of intellectual and practical know-how concerning how to handle and control the ingoing parameters - in terms of proton donators, volatile cat-ions, non-flammable gas, carbon sources, pH etc., - each one of the fire/flame retardant products is individually composed to meet each polymer, plastic or fibre materials requirement to achieve the relevant required fire safety standard.

THE CURRENT POSITION WITH MHE®

In July 2011 some national MHE® Patents - strongly limited to the geographical territory of Europe including the former USSR - were sold to the Swedish listed company Deflamo AB.
Deflamo AB is limited to produce, market and sell MHE® products only within Europe and only under the brand name Apyrum®.
Deflamo AB is under no circumstances allowed to grant licenses to a third party operating outside Europe.

AWARDS

MHE® products have received international prestigious awards every year since December 2003 until today.

  • Environmental Innovation Scandinavia, 2003
  • Seoul International Innovation Fair [SIIF], 2004
  • Delta Forum in Shanghai, 2005
  • BBC World Challenge, 2006
  • UNEP Technical Awards, 2007
  • UNEP Nature’s 100 Best, 2008
  • Global Awards, 2009
  • Seoul International Innovation Fair [SIIF], 2010
  • Energy Globe Awards 2011
  • International Innovation Exhibition in Kunshan (China), 2012
  • 5th Fajr International Inventions & Innovations Exhibition 2013 [FINEX] in Tehran (Iran)

To read more about all the international prestigious awards that MHE® has received please kindly visit Internet and the following website www.trulstech.com but also www.youtube.com/trulstechgroup.

Note: Biomimetic Technology Ltd - the HUB of the MHE® product family - is a part of Trulstech Group.

WHY MHE® - THE NON-TOXIC FIRE/FLAME RETARDANT?

Worldwide, fires are the 4th leading cause of accidental death.
In the US alone fires take more than 3,000 lives per year.
In the western industrialized world the figures are estimated to be about 10 times that.
14% of infant deaths in the western industrialized world are due to fire.
The scale of accidents and deaths caused by fire in developing countries may be even more.
The number of humans injured by fire greatly exceeds the number of deaths.

Primarily, it is the toxic smoke released by fires that kills or causes harm by attacking the respiratory systems of humans.
The heat is very painful and can cause severe human injuries for the rest of a victim's life.
The cost to society is enormous.

Today, fire/flame retardants are frequently applied on commercial products primarily aimed for the business markets in North America, Europe and Australia.
Most of the commercial application products aimed for the business markets are manufactured in Asia-Pacific.

As mentioned earlier most of these fire retardants are extremely deleterious to the lives and health of both present and future generations of humans.

MHE® is the prime safe alternative to the harmful chemical fire/flame retardants that are found in most consumer products made of polymer, plastic or fibre materials.
Furthermore, the cost of MHE® products makes them very competitive.
In particular MHE® products are market price competitive in metric tons (MT) in respect of the Chinese market for fire/flame retardant products.

BUSINESS MARKET

The global Flame Retardant (FR) market business represents $ 6-7 billion USD per annum with a market growth of 6.9% annually(2011).
80% ($ 4.8-5.6 billion USD) of the FR business market is outside Europe.
48% ($ 2.9-3.4 billion USD) of the global FR business market belongs to Asia-Pacific.
In China alone 850,000 metric tons (MT) per annum of FR are applied on consumer products.
China corresponds to c. 40% ($ 2.4-2.8 USD) of the FR business market in Asia-Pacific.
These figures are based on the current average market bulk price in China.(2011).
For example, the most frequently used flame retardant in China is Antimony.
The Antimony bulk price in China (Q3/2011) was $ 13,000 USD per metric tons (MT) (reported by Roskill Sept 2011).

PATENTS

The Australian Patent Agency - Collison & Co - in Adelaide, South Australia has made all patent applications regarding MHE®.
It began in August 2003 [WO 2004/015026 A1] when the first MHE® patent was filed. Since then it has continued with another MHE® patent filed in year 2008 [WO 2008122076 A1] and it will be followed by a new MHE® patent application this year 2013.

Patents for MHE® have been applied for or granted in the following countries;

  • All countries in Europe and f.USSR (these patent rights have been transferred to DeFlamo AB - see earlier in this regard)
  • Middle East: Israel
  • Africa: South Africa
  • Asia-Pacific: China, Hong Kong, Taiwan, Japan, Korea, Vietnam, Cambodia, Thailand, Malaysia, Singapore, Indonesia
  • Asia: India
  • Oceania: Australia, New Zealand
  • South America: Argentina, Brazil and Chile
  • Central America: Mexico
  • North America: USA and Canada

PATENT VALUATION

  • FUNCTION: MHE® Patent provides the opportunity to apply non-toxic and eco-friendly and biodegradable fire/flame retardant product treatment on polymer, plastic and fibrous materials.
  • PERFORMANCE: At decomposition of MHE® treated materials both extinguishing and cooling effects take place. Other known fire/flames retardants don't offer that.
  • COST OF PRODUCTION COMPARED WITH THE CLOSEST TECHNOLOGY: MHE® contains only food grade raw material in respect of approved quantities and in concentrations like you find in daily foodstuff such as in grapes, fruits and bread. Due this MHE® raw material products are easy to obtain globally and without control option for the chemical process industry in terms of price and availability.
  • SCOPE OF PROTECTION: Very substantial modification to the product would need to be effected by any competitor to avoid an infringement of the MHE® IP.
  • PROTECTED PART OF THE VALUE: The MHE® patents represent a technical paradigm shift regarding fire/flame retardants. However, on top of that the MHE® intellectual property contains lots of other product application "know-how". For example, the patents don't contain information about the demands on raw material purity and quality, the step-by-step chemical processing in combination with respective pH-data, the individual mixture in terms of raw material concentrations and quantity to achieve the correct mixture for each host material treatment.
  • INTRUSION DETECTION: MHE® at decomposition only generates water and carbon dioxide. Due to that MHE® treated host material can easily be compared with the same untreated host material at decomposition in mission to study released gas and residues to as certain if there is a patent infringement.
    Furthermore, all trade with chemicals has to be thoroughly examined by customs to comply with international trade commitments and laws. That makes it not too difficult to get adequate information from any national chemical inspectorate regarding permission to use requested chemicals in case of suspected patent infringement. It is just to put focus on the consumption of carboxylic acids in combination with tetra-alkali-pyrophosphate.
  • COMMERCIAL PHASE: In July 2011 some national MHE® Patents strongly limited to the geographical territory of Europe were sold to the Swedish listed company Deflamo AB. Deflamo AB is limited to produce, market and sell MHE® products only within Europe and only under the brand name Apyrum®. Deflamo AB is under no circumstances allowed to grant licenses to a third party operating outside Europe.

    Until today 14 different host material compositions have successfully been treated with MHE®.
    There are short videos on Internet www.youtube.com/trulstechgroup that show the performance of MHE® treated host materials attacked by fire.
    Following host materials have been successfully treated with MHE® products in the laboratory and by the potential customers that have supplied the host materials,

    • Cellulose Wool aimed for construction businesses.
    • Kraft paper aimed for the furniture industry.
    • Canvas aimed for the industrial production of tent.
    • Viscose aimed for the textile industry.
    • Cotton aimed for commercially used curtains etc.
    • Polyester fibre aimed for acoustic applications.
    • PVC-film aimed for construction businesses.
    • PVC-emulsion aimed for commercial product applications.
    • PU-foam aimed for construction businesses.
    • EPDM-rubber aimed for construction business for example rubber matting.

    A market breakthrough took place in Europe Q4/2012 and concerned PVC-film, Kraft paper and Canvas.
    PVC-film treated with Apyrum® (MHE®) was certified by an accredited test institute to meet the European fire safety standard - the French M1 with a LOI (Limited Oxidation Index) > 28.
    Other Apyrum® (MHE®) treated material product applications have been certified by accredited test institutes to meet the European fire safety standards for respective materials such as EPDM rubber, Kraft-paper (furniture material), Textiles (canvas, viscose, cotton).

  • VALUE OF FURTHER OPPORTUNITIES: As mentioned above, there are several potential MHE® patent applications, each one of which meet the demands on "news value" and "technical height". For example, existing patents don't contain information about the necessary purity and quality of the raw materials to meet the requested fire safety standard functionality. Neither, it tells anything about the step-by-step chemical processing in combination with respectively pH-data or anything about the individual mixture in terms of raw material concentrations and quantity to achieve the correct mixture for each host material treatment.
  • CONTRACT MANUFACTURING

    Contract manufacturing is initially recommended regarding MHE®. The manufacturing expenses might differ depending on the relevant processing industries location and the process equipment they use.
    Contract manufacturers in Europe charge about 1,000 Euro per day shift (8hrs). One day shift is charged for setting-up (4 hrs) and cleaning (4 hrs) after finishing the chemical processing.
    The more modern and the more automatically operated the relevant processing equipment is, the more MHE® bulk quantities can be processed during a day shift.
    Contract manufacturers that offer 24 hrs processing, 5 days a week, seem to be most cost-efficient.
    There are contract manufacturers in Europe and Australia with the necessary industrial experience to process MHE® products.

    Don't hesitate to contact Trulstech regarding this business opportunity

    Kind regards
    Mats Nilsson
    Founder & Chairman