The Food Revolution Group has proposed strategic distribution agreement with health and skin care products exporter Careline Australia Pty Ltd to distribute FOD products in China, targeting additional sales of at least $20 million per annum within two years. The deal is in exchange of up to 190 million shares issued by FOD to Caroline once the agreement is through.
As per the company’s announcement to ASX, Careline will distribute FOD’s beverages, juice, and vitamin products in China to rapidly boost the sale of The Food Revolution Group from approximately A$35 million to between A$100M and A$500 million within three to five years.
Further, FOD has inked an investment deal with founder and CEO of Careline Australia Pty Ltd, Dr. Norman Li to invest up to $20.25 million. The investment is reported to be done in five tranches through the issue of 375 million shares at an issue price of $0.054 per share. Following the completion of Tranche 2 investment, strategic investor Dr Norman Li is expected to be appointed as a Chairman of The Food Revolution Group.
This would enable FOD to expand its sales and distribution of existing as well as new products by utilizing Careline’s growing network of more than 10,000 affiliate marketers.
FOD is expected to enter into the distribution agreement on 28 September 2018 after receiving due approval from its shareholders.
Following the announcement of investment and proposed distribution agreements FOD share price has gone down by 3.125% to $0.093 on 11 September 2018 (2:20 PM AEST). The stock has seen a performance change of +84.62% over the past one year.
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