- Sanitiser developer eSense-Lab (ESE) has locked in a potential $10 million sales contract with United States-based Blue Science Solutions
- The deal covers all future terpene-based sanitiser products created by eSense and spans for an initial 12-month period, after which point it can be renewed every 12 months indefinitely
- Blue Science has exclusivity under the deal as long as it can hit some key sales milestones, including $3 million in sales within 12 months and $10 million within five years
- If Blue Science fails to hit these figures, eSense has the right to make the deal non-exclusive
- Shares in eSense are trading 75 per cent higher this morning, currently worth 3.5 cents each
Terpene-based sanitiser developer eSense-Lab (ESE) has locked in a potential $10 million sales contract with United States-based Blue Science Solutions.
The deal covers eSense’s future sanitiser products and gives the company a foot in the door of the U.S. market. The deal will last for an initial 12 months, after which point it can be renewed again every 12 months indefinitely. The sales agreement covers all terpene-based products created by eSense in the cleaning and disinfecting solutions market.
Blue Science creates non-toxic sanitiser product through electrolysis, which is the process of passing an electric current through a liquid to change the position of its electrons. The company holds several patent and patent applications for cleaners, disinfectants, and cosmetic products created through its electrolysis process.
Blue Science will be given exclusivity to sell eSense products across the U.S. as long as it can hit some key goals. If the company can sell at least $3 million of eSense products within the first 12 months of the deal, the exclusivity will be retained for another four years, over which the Blue Science needs to sell an additional $7 million.
If Blue Science does not meet this goal of $10 million in sales over five years, eSense has the right to make the deal non-exclusive.
In return for the hefty sales, Blue Science will nab a standard commission on all sales along with 10 million eSense Chess Depositary Interests (CDIs) priced at one cent each.
Interestingly, however, eSense is yet to finish creating the products up for sale. The company said it is still finalising product formulations, with the first product — a terpene-based sanitiser — to be ready for manufacture in four to six months.
Blue Science pulled in just US$2.5 million (roughly A$3.6 million) in revenue over the last financial year. Meanwhile, eSense has a market cap of just $10 million, meaning the intended product sales are equal to the total current value of the company.
Thus, today’s agreement is a major contract for two small companies which, if successful, could provide some major value in the medium-term.
Shareholders have backed eSense this morning, with shares currently up 75 per cent and trading for 3.5 cents each.