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- Cellmid (CDY) has received the first orders for its skincare products from Hong Kong-based distributor Ourui Health Management
- The first order is for 66,000 bottles of Jo-Ju shampoo, which will be delivered in bulk and packaged in China
- Cellmid has also received an order for 18,672 bottles of fully finished Jo-Ju lotions with import permit
- These orders have a combined revenue value of $530,000, and are scheduled for delivery in February and April 2021
- Cellmid is up 9.52 per cent and trading at $0.12 per share
Cellmid (CDY) has received the first order for its skincare products from Hong Kong-based distributor Ourui Health Management.
On December 14, 2020, Cellmid’s subsidiaries Advangen Limited and Advangen Inc signed an exclusive ten-year master distribution agreement with OHM. Under the arrangement, OGM agreed to sell Cellmid’s Jo-Ju and Lexilis anti-aging and skincare products in China.
The first order the company has received is for 66,000 bottles of Jo-Ju shampoo, which will be packaged in China, at OHM’s costs. This shipment will be delivered in bulk, since no import permit has been received for the fully finished shampoo yet.
Additionally, Cellmid has received an order for 18,672 bottles of fully finished Jo-Ju lotions, with an import permit.
In total, the two orders which the company has received have a combined revenue value of $530,000, which is paid before and will accrue on delivery. Cellmid intends to deliver these orders in February and April of 2021.
Per the terms of the Cellmid’s contract with OHM, a 500,000-unit order is required within the first twelve months of the agreement.
It’s expected that the company will receive roughly half of the first-year orders in October 2021. This bulk-buy in October will come ahead of the biggest shopping day in China’s retail calendar, Singles Day, which falls on November 11.
After this, minimum purchase orders under the distribution agreement will increase to one million units in the second year, with a double-digit percentage increase every year afterwards.
Cellmid is up 9.52 per cent and trading at $0.12 per share at 11:33 am AEDT.
