Cassandra Oil was established in 2011 to commercialise the reactor technology invented by the company's founder and principal shareholder, Mr. Anders Olsson.
Mr. Olsson first came into contact with the oil lakes in the Middle East when he was sent there to evaluate known decontamination technologies. While conducting this evaluation, he systematically combined known technologies with inventions of his own and, in 2010, was ready to file his first patent application for registration. Anders Olsson has driven and funded the development of this technology along with a number of partners and financiers. They have transferred all assets to Cassandra Oil for payment in the form of shares. The consideration also included a cash payment of SEK 1 million, which will be deducted from Anders Olsson's royalty entitlement (see below) in respect of the first reactor.
Upon its acquisition of the patent and other assets, Cassandra Oil entered into an agreement with Anders Olsson (via the company) entitling Mr. Olsson to remuneration (herein referred to as "Royalty") on the following terms. Anders Olsson is entitled to Royalty for each reactor that Cassandra Oil has installed and put into operation. The nominal amount of the Royalty for the 1,500 kW reactor is 1,000,000 Euro. About one third (350,000 Euro) is paid when installation is completed and the reactor is in operation. Two thirds (700,000 Euro) are paid over a period of five years (provided that certain production and capacity criteria are met). The threshold limit for the payment of royalty to Anders Olsson is 100 million Euro.
Following a renegotiation in April 2014, with a purpose to strengthen the company’s liquidity during the start-up phase, the parties have agreed to postpone Mr Anders Olsson's royalty compensation until the eleventh CASO reactor is in operation.