Last checked at 27 Apr 2020 07:00
27 April 2020
VENTURE LIFE GROUP PLC
("Venture Life" "VLG" or the "Group")
New, Exclusive Long Term Agreement Secured in China
Largest ever contract win for a minimum of €168 million
Venture Life (AIM: VLG), a leader in developing, manufacturing and commercialising products for the international self-care market, announces that it has signed a new, exclusive 15 year agreement with its existing Chinese partner for Dentyl. The agreement is for the distribution of products in Greater China (China, Macau, Hong Kong, Taiwan), and covers a number of the Group's products, including Dentyl.
This significant long term agreement has minimum purchase obligations to the value of €168m over the 15 year term. The Directors believe that this minimum value commitment, which the partner is required to purchase in order to retain the exclusive distribution rights, demonstrates our partner's long term intention and support for these important brands.
As announced on 9th April 2020, Venture Life has already received orders from this Chinese partner for Dentyl and some other key products in excess of €7m for delivery in 2020. At the start of 2020, the partner started a new marketing initiative and, coupled with heavy advertising investment by them, demand has increased rapidly, both pre and post the COVID-19 situation in China. Our partner largely sells our products via the online channel and all sales and marketing costs are borne by them, which aligns with our international corporate brands strategy.
Jerry Randall, CEO of Venture Life, commented: "I am absolutely delighted that we have secured this significant agreement in China with one of our key partners. The relaunch of Dentyl by our partner using online stores and channels has gained momentum quickly, and this significant extension of the agreement, both in time and minimum purchase commitment, shows the strength of both our future expectations for these products in China."
This announcement contains price sensitive information.
For further information, please contact:
Venture Life Group PLC | +44 (0) 1344 578004 | ||||
Jerry Randall, Chief Executive Officer | |||||
Cenkos Securities plc (Nomad and Broker) |
+44 (0) 20 7397 8900 | ||||
Stephen Keys / Mark Connelly / Cameron MacRitchie (Corporate Finance) | |||||
Russell Kerr / Michael Johnson (Sales) | |||||
Alma PR | venturelife@almapr.co.uk or + 44 (0) 203 405 0208 | ||||
Helena Bogle / Hilary Buchanan / Kieran Breheny |
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About Venture Life (www.venture-life.com)
Venture Life is an international consumer self-care company focused on developing, manufacturing and commercialising products for the global self-care market. With operations in the UK, The Netherlands and Italy, the Group's product portfolio includes some key products such as the UltraDEX and Dentyl oral care product ranges, food supplements for maintaining brain function, medical devices for women's intimate healthcare, fungal infections and proctology, and dermo-cosmetics for addressing the signs of ageing.
The products, which are typically recommended by pharmacists or healthcare practitioners, are available primarily through pharmacies and grocery multiples. In the UK and The Netherlands these are supplied direct by the company to retailers, elsewhere they are supplied by the Group's international distribution partners.
Through its Development & Manufacturing business in Italy, Biokosmes, the Group also provides development and manufacturing services to companies in the medical devices and cosmetic sectors.