Zoono Group Limited (Company) (ASX: ZNO) is pleased to announce that it has entered into an exclusive distribution agreement with Beijing Youmeng Technology and Development Limited for the childcare and hotel sectors in China.
Following the Coronavirus outbreak, there has been unprecedented interest in Zoono’s technology given its proven efficacy against viruses and bacteria and ability to prevent cross contamination.
The material terms of the new distribution agreement are:
- An initial five (5) year term;
- Exclusivity in all childcare and hotel markets in China;
- Minimum purchase volumes of:
- NZD$1.5m in the first 18 months;
- NZD$2.3m in year two; and • NZD$3.0m in year three, and thereafter increasing by 10% per annum; and
- Full payment is required for all product orders prior to shipping.
Zoono has received an initial payment of NZD$775,000 from Beijing Youmeng Technology and Development Limited.
The agreement for childcare and hotel sector in China is another step in Zoono’s strategy to focus on specific sectors and on the appointment of reputable distributors with explicit expertise in these market segments.
Zoono has also sought to exercise greater control over the activities and performance of its distributors in its new distribution arrangements, 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.
This agreement is the fourth distribution agreement entered into by the Company for an industry sector in the Chinese market in the last six months.
Unaudited revenues for the quarter to date are NZ$2.4m, with on-line sales in Australia and New Zealand contributing strongly.
This announcement has been authorised and approved for release to ASX by the Board of Zoono Group Limited.
- Release Date: 10/02/20 09:28
- Summary: Exclusive Childcare and Hotel Agreement for China
- Price Sensitive: Yes
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