Impression Healthcare Limited (ASX: IHL)
is an Australia based home dental impression company providing cost-effective dental healthcare products to the consumers at their door-step. It has its laboratory in Victoria. With its custom-fitted oral devices, it helps customers to overcome problems like teeth discoloration, snoring, mild to moderate sleep apnoea, etc.
IHL, with Pace Sports Limited (Pace), has executed a Heads of Agreement (HoA) for the marketing and distribution of its oral devices in the Eastern Asian Territories including China, Hong Kong, ASEAN, and Taiwan. The HoA outlines the development of an exclusive sales and distribution agreement for all its oral devices in the countries. Pace is a market leading distributor with its presence in the territories. It will promote and sell IHL’s Gameday Mouthguards, The Knight Guard, The Sleep Guardian, and Instant Teeth Whitening products. IHL will supply all products via its owned and contracted labs. It will retain all IP and control of all digital platforms while the customer devices will be manufactured in Shenzhen, China.
This substantial international expansion opportunity further highlights IHL’s strategy to continue its impressive growth in the oral devices sector by adding large global markets to its already market leading and rapidly growing position in Australia and New Zealand, while building a market-leading ready-made portfolio of cannabinoid medicines for distribution in multiple large western markets.
This represents a significant international expansion opportunity for IHL. The markets covered by the HoA have a population of over 1.7 billion. Contact sports are played extensively and are growing in the Territories. The demand for teeth whitening in the Territories is substantial and growing. Sleep apnoea and bruxism, which are addressed by IHL’s The Sleep Guardian and The Knight Guard, are well recognized and have been extensive problems in the Territories.
On 4 December 2018, IHL announced the execution of an exclusive license agreement with Resolution Chemical Limited that granted IHL the rights to all IP associated with the production of a complete non-synthetic Dronabinol product.
By using a well-established distributor, IHL will be able to avoid many of the risks associated with expansion into Asian countries, while taking advantage of an experienced ready-made sales and marketing force.
As per the management, the HoA is the culmination of an extensive search for the most appropriate partner for IHL to distribute its Australian-branded products into key Asian markets. The completion of this deal could be transformational for IHL as the markets are huge and even minimal penetration will result in significant, and profitable, sales. The company is delighted to kick off this exciting relationship now, prior to its peak sales season, being the March and June quarters. This HoA is the second move in as many weeks, expanding IHL’s reach into major international markets and follows the licensing of proprietary technology for the creation of cannabinoid medicine, Dronabinol, in the key Territories of the USA, Canada, Australia, and New Zealand to create a global multi-faceted business
The stock price has been performing well from the past one year with an increase of 16.21%, but in the past month the price has fallen by 25%. The scrip last traded at 1.8 cents per share.
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