EZZ Life Science Signs Major Sales Agreement With Hong Kong-Based Distributor

EZZ Life Science Holdings Ltd (ASX: EZZ) has entered into a major sales agreement with Hong Kong-based Pinehills for the supply of EZZ-branded products.

EZZ is a genomic life science company with a mission to improve quality of life and human health.

The five-year agreement with Pinehills involves the purchase of EZZ-branded products with a value of at least A$15 million in the first 12-month period.

Expanded distribution channels

The agreement with Pinehills provides EZZ with expanded distribution channels into the key markets of China and Vietnam as well as other markets within Southeast Asia.

EZZ Chairman Glenn Cross said: “We are delighted to announce this significant sales agreement with Pinehills.

 “Pinehills has established a strong distribution platform into key markets where we see growing demand for EZZ’s expanding range of products.”

Terms of the agreement

  • Pinehills will purchase EZZ-branded products with a total value of at least A$15 million in the first year, starting May 2024.
  • Agreement term is five years, concluding 30 April 2029.
  • The annual purchase amount from Pinehills must increase by at least 10% each subsequent year (following the first year) until completion of the agreement.
  • Should Pinehills fail to meet the annual purchase growth requirements, EZZ has the right to claim all costs and losses from Pinehills.

Strong Q3

EZZ has a focus on genomic research and development to address four key human health challenges: genetic longevity, human papillomavirus (HPV), children’s care, and weight management.

The company achieved record cash inflow of ~$23.6m from customers in 3Q FY24, representing a 111% increase compared to 3Q FY23.

As of 31 March 2024, EZZ’s cash balance remained robust at $14.5m, with no debt.

 

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