Nanophase Technologies notifies shareholders amid BASF accusations of selling zinc oxide-based products
08 Sep 2022 --- Nanophase Technologies, the parent company of Solésence, is filing an 8-K – a notice of changes – against BASF, one of its clients, who reportedly filed a complaint against Nanophase in the Superior Court of New Jersey, US.
The BASF complaint claims, among other things, that Nanophase violated a supply agreement’s exclusivity provisions by selling products containing zinc oxide through its subsidiary Solésence.
Both companies were contacted by PersonalCareInsights for further comments and have yet to respond.
“Nanophase has had a longstanding supplier relationship with BASF. For the past half-decade, in a separate capacity, Solésence has served as the value and growth engine for the company,” says Jess Jankowski, president and CEO at Nanophase Technologies.
“Solésence and the intellectual property used to manufacture its products – including the unique, patented technologies leveraged by our brand partners across skincare and color cosmetics categories – are exclusively owned by our company and are not impacted or otherwise put at risk by the BASF complaint.”
The complaint claims that Nanophase violated a supply agreement’s exclusivity provisions by selling products containing zinc oxide through Solésence.Jankowski explains that due to this, the company’s value engine, including growth and growth potential, remains unencumbered.
“We hope to continue negotiating in good faith to resolve these issues. We do not foresee immediate or long-term impacts on our ability to produce, sell and grow our Solésence products,” he adds.
Nanophase Technologies and the 8-K
Nanophase Technologies has innovations that shield skin from environmental aggressors and help in medical diagnostics.
An 8-K is a notice of unexpectedly significant corporate changes or unannounced major events that could impact shareholders or the Securities and Exchange Commission (SEC).
The report is often referred to as a Form 8K which informs the public of events such as acquisitions, bankruptcy, the resignation of directors or adjustments to the fiscal year.
“Nanophase, from the inception of the Active Stress Defense technology platform, has operated with absolute integrity to preserve the rights of our key clients while expanding the scope and availability of the important, lifesaving and life-enhancing technologies we create,” says Kevin Cureton, COO at Solésence.
Continuing daily operations
Regarding the exclusivity terms in the agreement, Nanophase has, in response to BASF’s action, filed a Complaint for Declaratory Judgment in the Circuit Court of Cook County.
An 8-K is a notice of unexpectedly significant corporate changes or unannounced major events that could impact shareholders.The company is confident in its position and will take the necessary actions to defend itself. This comes after two decades of supply to BASF and more than a half-decade of running the Solésence business.
“We would also like to assure all our brand partners and suppliers that this action will not distract or detract from our daily operations,” adds Cureton.
UV protection and zinc oxide-based product
Solésence’s formulations are touted for their UV protection, free radical prevention to protect against pollution and antioxidant performance.
Previously, the Multi-Cultural Magic SPF 50+ from Solésence Beauty Science won the Cosmopack Award for Formulation. In conjunction with the award, the company also unveiled its market-ready products Nude Lip Oil SPF 40+ and Protective Lip Balm SPF 30+.
Nanophase Technologies received a patent in Korea for its Kleair – a new type of high-transparency zinc oxide sunscreen with “improved” UV-blocking characteristics.
Edited by Nicole Kerr
