Softbank Investment International (Strategic) Ltd. (Softbank Strategic) and Xybernaut Corporation (Xybernaut) have signed a memorandum of understanding (MOU) to establish a joint venture which will develop the market for mobile/ wearable computing technologies in China.
Xybernaut will own 60% and Softbank Strategic 40% of the new joint venture (JV) Company, which will introduce Xybernaut products and intellectual property (IP) into the PRC. More specific information related to the terms of the agreement and relationship is expected to be announced in the near future. The joint venture signals the importance that both Companies place on mobile/ wearable computers as the next wave in computing technology. The new JV Company will have the exclusive right to manufacture, market, sell and distribute Xybernaut products throughout the PRC.
Under the terms of the joint venture arrangement, Xybernaut will assign all existing agreements and relationships in China to the new JV Company, and provide the necessary know-how and technical assistance. Softbank Strategic will provide start-up funding. Although Xybernaut will be the majority owner of the joint venture, Softbank Strategic will be responsible for overseeing the joint venture's day-to-day operations. The arrangement is subject to completion of definitive documentation.