Last checked at 17 Aug 2007 07:00
CORSIE GROUP PLC DISTRIBUTION AGREEMENT SIGNED
The Board of Corsie Group plc ("Corsie" or the "Company"), the AIM listed specialist in the assembly and sale of products and services to the leisure market, is pleased to update shareholders on an exclusive distribution agreement for the U.K. and Ireland signed with TeaTech, a U.S. based company.
Highlights
* New subsidiary Green Tea Zero Ltd. (GTZ) formed;
* Corsie takes 76% controlling interest in new subsidiary;
* Exclusive distribution for U.K. and Ireland territories until 31 December
2010;
* Product's health benefits include zero calories, no artificial flavours,
colours or preservatives, and a high concentration of anti-oxidants; and
* Product endorsed by film star Jackie Chan.
A new subsidiary of Corsie (Green Tea Zero Ltd.) has been incorporated as part of a Joint Venture to handle the distribution agreement. Corsie has been working closely with SMGB Holdings Ltd, the importers, marketers, distributors and agents of novel worldwide products, to secure this new agreement. SMGB Holdings Ltd has subscribed for 24% of the equity in Green Tea Zero Ltd (`GTZ Ltd' or `the new subsidiary'). The new subsidiary will be managed and operated from the Corsie head office, and will be funded from existing resources on a 76%-24% basis. The shareholders have also agreed an exit mechanism in the form of a Put and Call option. This allows either party to exercise at an agreed price on the third anniversary of GTZ Ltd incorporation.
Green Tea Zero Ltd will market and distribute Jackie Chan Green Tea - a range of green teas endorsed by film star Jackie Chan with zero calories, no artificial flavours, colours or preservatives, and a higher concentration of anti-oxidants than traditional green teas.
Negotiations have already been opened with major high street food retail chains, and the Board is hopeful that positive outcomes will soon be reached. In the U.S. market, TeaTech quickly gained distribution to over 15,000 retail outlets through natural food retailers, specialty food stores, select gourmet stores, drug chains and via the company's website. TeaTech are confident that Green Tea Zero Ltd will be able to achieve comparable success in the U.K. and Ireland.
Announcing the agreement, Richard Corsie, Chief Executive of Corsie, said: "We are delighted to add Jackie Chan Green Tea to our portfolio. The board's strategy to increase revenue through selective distribution agreements still remains a key focus. Distribution agreements capable of delivering substantial growth and profit improvement are an excellent cost effective way to improve revenue streams."
Wade Xiong, CEO and co-founder of TeaTech, said: "The convenience of our fresh Instant Green Tea Beverage Mixes in no way sacrificesquality or health benefits. We believe Jackie Chan's exclusive endorsement will boost TeaTech's growth and will help develop the U.K. and Ireland market for Green Tea Zero Ltd as it has done in the U.S. We look forward to working with the Corsie Group who hasan excellent reputation within the health market."
Enquiries:
Corsie Group plc Tel: 01620 828940
Richard Corsie MBE, Chief Executive
www.corsiegroup.com
City Financial Associates Limited Tel: 020 7090 7800
James Caithie
Bishopsgate Communications Ltd Tel: 020 7562 3350
Dominic BarrettoJenni HerbertAbout Corsie Group plc
Corsie is a provider of products to the worldwide leisure market. Its business operates in the UK and has customers in a number of geographical markets including Europe, Canada, Hong Kong, Malaysia, Australia and New Zealand. The business was founded by Richard Corsie in 1997 after he retired from the sport of bowls and following the buyout of Douglas Kenn Limited and Worth Sports Limited.
The Corsie Group is involved in the assembly and sale of products and services to the leisure market. The Group consists of four operating divisions. Within each division, the Group is focused on achieving growth both organically, and through selective acquisition of companies or businesses in the leisure market.
CORSIE GROUP PLC