Mount Knowledge Holdings, Inc. announced on Friday that they entered into an Intellectual Property Purchase Agreement, dated December 28, 2010. This agreement is to acquire the intellectual property referred to as the “Real Time Learning and Self Improvement Educational System and Method™” developed and owned by Erwin E. Sniedzins, the Company’s Chairman and Ucandu Learning Centres Inc. (UCandu), a company controlled by Mr. Sniedzins.
Before the execution of the Intellectual Property Purchase Agreement, Mount Knowledge Holdings, Inc. had utilized the same Intellectual Property, the core technology of the Company’s products and services, pursuant to a Master Software Licensing Agreement with Mount Knowledge, Inc. Because of the acquisition of the Intellectual Property, the Master Software Licensing Agreement was no longer necessary and the parties therefore agreed to cancel it on December 27, 2010.
Additionally, the Company entered into an Independent Contractor Agreement with Ucandu, dated December 28, 2010. This is for technology development, sales and marketing services to be provided by Ucandu to the Company over a three-year period.
Moreover, the Company also acquired a 49 percent ownership interest in 1827281 Ontario Inc. d/b/a/ Mount Knowledge Technologies Inc. (MTK Tech), a technology development company formed on June 18, 2010 and headquartered in Toronto, Canada as of December 16, 2010. Ucandu owns the remaining 51 percent ownership interest of MTK Tech.
The primary reason for the creation of MTK Tech was to provide a platform for Mr. Sniedzins and the technology development team to oversee new technology advancements of the Intellectual Property on behalf of the Company. It was also to have a more focused dedication to identifying sources of development funds such as small business development incentive programs and other private and public research initiatives available in Canada. All advancements and/or additions to the technology developed by MTK Tech remain exclusively owned by the Company pursuant to the Intellectual Property Purchase Agreement and subsequent operational documentation.
Along with the acquisition of the Company’s 49 percent ownership interest in MTK Tech, the Company also entered into an option agreement with Ucandu to purchase Ucandu’s 51 percent ownership interest in MTK Tech at any time and at the sole discretion of the Company for a purchase price of 100,000 shares of restricted common stock of the Company.
In addition, on December 27, 2010, the Company and MTK Inc. entered into a Warrant Cancellation Agreement. With it the parties jointly agreed to terminate, effective immediately, the Warrant Purchase Agreement dated January 21, 2010 between the Company and MTK Inc. The Company did not incur any termination fees or penalties in connection with the termination of the Warrant Purchase Agreement.
Mount Knowledge Holdings, Inc. is an educational software development, sales and training company. They offer innovative and proprietary “real-time self learning” software products and teaching services for corporate and direct consumer markets globally.
The Company’s technology stems from an interactive and visual learning system referred to as “Syntality™,” integrated into a core application known as the “Knowledge Generator™”. It is currently being offered in China to the more than 300 million students from grade school to university seeking to learn English. It is also being offered to a vast number of people in the Chinese workplace, increasing their English fluency to achieve greater income earning potential.