eSense- Lab Limited (ASX: ESE) has published about the continuation of its commercialisation activities through an agreement that would see its products distributed across North America.
The negotiations and signing of a commercial non- exclusive distribution agreement for providing e-Juice to VaporSpec, (a company domiciled in California which distributes products to the vaping sector) has been completed by ESE.
VaporSpec would distribute several different e-Juice products that will be produced by eSense and shipped to VaporSpec for distribution in the USA and Canada, post the successful conclusion of the 3 months of negotiations.
As a frontrunner, VaporSpec has been successfully distributing products to the wholesale and retail vaping segment of the industry. As a secure substitute for smoking, E-liquids has its usage for vaporising or “vaping”. On 6 December 2018, ASX had announced, that the agreement with VaporSpec reflects the same agreement which was signed with a UK-based entity.
The signed agreement between both the companies required the smallest amount of e-Juice in 10 ml. bottles. The least twelve-monthly measure would upsurge from four lakh and fifty thousand bottles in the very first year to five mn bottles while reaching the third year of the deal. The agreement will be renewed in every 3 years. The provided measure would depend on the fruitful estimation period when there is a minimal purchase of one lakh and fifty thousand bottles during the first six months of the signing of the deal. The agreement concludes an extended period of successful negotiation and increases the opportunities for the usage of ESE’s terpenes in a numerous sector of the industry.
Mr Haim Cohen, ESE’s Chief Operating Officer, said that they are delighted to announce to the market about the ESE and VaporSpec signing the distribution agreement which would open the doors for many future opportunities in due course since VaporSpec is a chief player in the USA’s West Coast. ESE is conducting testing programs with other companies in the market too. They are also developing various other products which would enable them to progress in the food additive, e-cigarette and such.
On 31 January 2019, ESE provided the quarterly activities ending 31 December 2018. During the quarter, ESE announced that commercialisation activities were ongoing with the signing of a 2-year supply agreement with the UK group, E-Quits Group.
The Company has been at various stages of negotiations with cannabis growers, e-liquid suppliers to the vape industry, wellness/ vitamin/ cosmetic companies and a company specialising in the supply of cannabinoid-based pharmaceutical products to the medical market. During the quarter, the Company supplied samples to a new potential client with a unique product in the vape industry and a new potential distributor in the USA.
Also, during the quarter, ESE finalised the issue of 93,966,671 Chess Depositary Interest at a share price of AUD 0.03 to raise AUD 2.89 million (the US $2.04million) before costs. The Placement was completed in two tranches. The Placement was completed by the Company’s corporate advisors, EverBlu Capital. In January 2019, a further 11,033,433 CDI’s were issued at AUD 0.03 to bring the total placement amount to AUD 3.2 million (US $2.26 million) before costs. At the end of the quarter, the cash on hand was US $2,017,000.
As on 8 February 2019, (as at 1:10 PM AEST) the shares of ESE are trading at A$0.032, without any further changes.
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