ROMEOVILLE, Ill., Sept. 07, 2022 (GLOBE NEWSWIRE) — Nanophase Technologies Corporation NANXa leader in mineral-based and science-based beauty and life science health solutions – with innovations that protect skin from the environment and aid in medical diagnostics – today submitted an 8-K reference noting that BASF, one of its customers, filed a lawsuit against Nanophase in the Superior Court of New Jersey.
The complaint alleges, among other things, that Nanophase violated the exclusivity provisions of a supply agreement by selling zinc oxide-based products through its subsidiary Solésence. In response to BASF’s lawsuit, Nanophase has filed a declaratory judgment in the Circuit Court of Cook County regarding the exclusivity clauses in the agreement. Although management is disappointed to have gotten to this point after two decades of supplying BASF and over half a decade of operating the Solésence business, the company is confident in its position and will take the necessary steps to defend it.
Jess Jankowski, President and Chief Executive Officer, commented, “Nanophase has a long-standing supplier relationship with BASF. For the past 50 years, Solésence has served in a separate capacity as a value and growth engine for the company. Solésence and the intellectual property used to manufacture its products – including the unique, patented technologies employed by our brand partners in the skincare and color cosmetics categories – is the exclusive property of our company and is not affected by the BASF complaint or otherwise compromised, our value engine, including our growth and growth potential, remains unencumbered. We hope that we can continue to negotiate in good faith to resolve these issues. We see no immediate or long-term impact on our ability to produce, sell and grow our Solésence products.”
Kevin Cureton, Chief Operating Officer, commented:…
