Signs Deal With Chinese Group
Zoono has licensed the distribution company, Zoono China International Trading Limited, to use its name and sell Zoono products to farmers, food producers and processors in China.
Importantly, one of the key focuses of the new distributor will be the use of Zoono products to minimise the impacts of African swine fever within the pig population in China. This initiative builds on the recent success of Zoono Z71 Microbe Shield in laboratory and field testing in combatting the African swine fever virus.
The material terms of the new distribution agreement are:
1. An initial 10-year term;
2. Exclusivity in all animal health markets including aquaculture and food processing plants in China;
3. Minimum purchase volumes of:
- NZD$3.1m in year one, including NZD$1m in instalment payments between execution of the agreement and 30 June 2020.
- NZD$4.6m in year two; and
- NZD$9.3m in year three, and thereafter increasing by 10% per annum;
4. Full payment is required for all product before it is shipped.
Initial orders have been placed, with further orders for NZD$300,000 required to be made under the agreement in each month of January, March and June 2020.
The new agreement for animal health and agribusiness in China is another step in the strategy embarked on approximately 12 months ago by the Zoono Board to revitalise the Company's global distribution strategy, primarily to achieve greater control of its distribution arrangements. In the key China market, it was decided to focus on the appointment of reputable distributors with specific expertise in discrete market segments rather than for the country generally.
In its new distribution arrangements, the Company has also sought to exercise greater control over the activities and performance of its distributors, particularly with respect to pricing, marketing strategies, minimum sales performance, adherence to service and delivery standards and protection of the Company's intellectual property and brand. The new agreement is the third distribution agreement entered into by the Company for an industry sector in the Chinese market in the last four months.
About Zoono Group Ltd
Zoono Group Limited (ASX:ZNO) is a global biotech company that develops, manufactures and distributes a suite of scientifically-validated, long-lasting and environmentally-friendly antimicrobial solutions. Zoono's mission is to improve health and well-being through innovative, safe, non-toxic and durable germ protection.
Zoono produces sprays, wipes and foams suited for skin care, surface sanitisers, and mould remediation treatments. The products are based on the 'zoono molecule', a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.
Zoono's products have received numerous regulatory approvals and the company's technology claims are supported by independent testing conducted in laboratories worldwide. Zoono is headquartered in New Zealand and its products are available globally.
To learn more, please visit: www.zoono.com
Zoono Group Ltd