RE: Snippets28 Dec 2022 09:15
"The Company will need to hold Fruitflow in stock from 1 January 2023 onwards, to sell to new and existing
customers, and the Company has therefore agreed to purchase from DSM the remaining stocks of Fruitflow
which DSM holds on 31 December 2022. It is intended that the Company will pay DSM for this inventory over
the course of a three month sale back period commencing on 1 January 2023, with payments due equally
(amounting to one third of DSM’s 31 December 2022 inventory) on 31 January 2023, 28 February 2023 and
31 March 2023. The amount of inventory which DSM will hold at 31 December 2022 will depend primarily on
DSM’s sales of Fruitflow over the remainder of 2022, hence it is not currently possible to state with any certainty
how much inventory will remain at 31 December 2022, or therefore the amount which the Company would
need to pay DSM for this inventory on 31 January 2023, 28 February 2023 and 31 March 2023.
Under the terms of the DSM Transfer of Business agreement, the Company can elect in the first quarter of
2023 to purchase some but not all of DSM’s remaining stocks of Fruitflow at 31 December 2022, being a
decision which the Company will seek to make in the first quarter of 2023 once the Company has a clearer
understanding of (i) the amount of stock remaining at 31 December 2022, (ii) the best before dates of this
inventory, which are currently estimated to be favourable / long dated in light of recent production runs of new
Fruitflow material in 2022, (iii) likely customer demand in 2023 and beyond and (iv) the Company’s financial
resources at that time.
The amount of stock which will remain at 31 December 2022 clearly remains uncertain as set out above,
although it is currently expected to be in excess of €1m (one million Euros), an amount which - if the Company
elected in the first quarter of 2023 to purchase this inventory in its entirety, which is likely to be in the Company’s
best interests - would require further equity or loan finance. Subject to the outcome of ongoing negotiations
with a third party, the Company might also be able to hold some of this stock on a consignment basis, only
paying for the stock when it was required for sale."
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