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- Zoono Group (ZNO) has entered a distribution agreement with Eagle Health (EHH) to distribute co-branded products in China
- The companies have established a co-branding arrangement which will see Eagle import Zoono’s products in bulk to its facility in Xiamen, China for packaging, labelling and distribution
- The products under the arrangement will carry the Eagle logo and show that it’s formulated by Zoono
- The three-year extendable agreement will start with minimum purchase orders of $1.4 million
- Currently, both companies are up, with Zoono trading 8.68 per cent higher at $1.82 while Eagle Health has jumped 44 per cent and is trading for 18 cents
Zoono Group (ZNO) has entered a distribution agreement with Eagle Health (EHH) to distribute co-branded products in China.
Both companies have established a “co-branding” arrangement where Eagle will import Zoono’s products in bulk to its facility in Xiamen, China for packaging, labelling and distribution.
Under the co-branding arrangement, Zoono’s formulations will carry the Eagle logo and show that it is “formulated by (or powered by) Zoono”.
Eagle Health is a Chinese business that develops, manufactures, markets and distributes a range of health food producers and nutritional and dietary supplements in China.
Collectively it has more than 300 Zhang Lao San exclusive product stores and franchised stores throughout China.
It also has a further 271 distribution partners, placing its products into more than 30,000 outlets across the country.
Due to the coronavirus (COVID-19), there is now unprecedented interest in Zoono’s technology and its proven activity against ‘corona type’ viruses and bacteria.
When applied, Zoono’s technology leaves behind a mono-molecular layer that bonds with any surface on which it is applied to, then attracts and destroys bacteria and pathogens.
Its ‘physical kill’ replaces the need for dangerous chemicals, poisons and alcohols, and the method of rupturing the cell means it cannot mutate, preventing the development of superbugs.
The distribution agreement is for an initial 3-year term with a 5-year rights renewal.
Minimum purchase volumes include NZD$1.5 million (AUD$1.4 million) in the first year, NZD$2.3 million (AUD$2.2 million) in the second year, and NZD$3.1 million (AUD$2.9 million) in the third year.
After this, purchase volumes in the subsequent years will increase by 10 per cent per annum.
The initial order for Zoono’s product is NZD$400,000 (A$382,918).
Eagle is receiving accelerated co-operation from the local government to expand its pharmaceutical facilities and registrations to speed up the packaging and distribution of Zoono products.
Chinese authorities are placing top priority on assisting companies with products and services associated with combating and controlling the spread of the coronavirus.
As a result of this, Eagle expects the appropriate licences to be granted to its Xiamen facility in the coming days.
At 12:22 pm AEDT, Zoono is up a slight 8.68 per cent and trading for $1.82, while Eagle Health has jumped 44 per cent and is trading for 18 cents.
