Retail store in China. Source: RooLife/LinkedIn
Market Herald logo


Be the first with the news that moves the market
  • RooLife Group (RLG) enters a term sheet with the China Cross Border Trading Group consortium (collectively “CCTG”) to sell RLG’s products across China
  • The parties will jointly assess select products to launch through CCTG’s retail stores and sales channels
  • Additionally, CCTG’s nominees will take up a $1 million placement which RLG will utilise for sales and marketing, platform enhancement, channel development, and distribution
  • As part of this, CCTG may earn up to 30 million incentive options by generating up to $30 million in revenue in the first 12 months
  • Company shares are up 4.55 per cent to end the day at 2.3 cents

RooLife Group (RLG) has entered a term sheet to appoint a China-based sales channel, the China Cross Border Trading Group consortium (collectively “CCTG”).

Under the term sheet, CCTG will sell RLG’s portfolio of products and nominees of CCTG will take up a placement of securities in RLG.

Placement details

The placement will include the issue of roughly 38.5 million shares at a price of 2.6 cents, representing an 18 per cent premium to RLG’s last closing price, to raise $1 million. It also comes with about 4.8 million unlisted options exercisable 5 cents on or before November 30, 2024.

In addition, CCTG and/or its nominees will be entitled to one million unlisted incentive options for every $1 million in sales revenue with at least $100,000 gross margin it directly provides to RLG for the 12 months from completion.

As such, CCTG may earn up to 30 million incentive options in the first 12 months by providing up to $30 million in revenue with an associated gross margin of 10 per cent or $3 million directly to RLG.

The eCommerce and digital marketing company will use the money to assist with sales and marketing, continued eCommerce platform enhancement, channel development for general trade, and China distribution.

Term sheet

RooLife will appoint CCTG to market and sell its products through its retail stores and sales channels across China. RLG will work with CCTG to review and select products from its portfolio for launch and identify other in-demand products for RLG to seek distribution and sales rights.

The parties expect to formalise the terms and conditions of the deal by November 19 when they’ll enter a binding distribution and marketing services agreement.

RLG Managing Director Bryan Carr commented on the deal.

“We are delighted to be working with Mr Xu and team and the planned addition of these new sales channels strongly supports our strategy to provide both cross border eCommerce capabilities and in-market general trade sales capabilities,” Mr Carr said.

Company shares were up 4.55 per cent to end the day at 2.3 cents.

RLG by the numbers
More From The Market Herald
Bulletin Resources (ASX:BNR) - Chairman, Paul Poli

" Bulletin Resources (ASX:BNR) confirms spodumene at Ravensthorpe

Bulletin Resources (BNR) has confirmed the presence of spodumene at the Deep Purple and Creek pegmatite outcrops.
M3M Mining (ASX:M3M) - Executive Director, Simon Eley

" M3M Mining (ASX:M3M) identifies high-priority targets at Edjudina

M3M Mining (M3M) has identified multiple high-priority gold targets at the Edjudina Gold Project in Western Australia.
Bellevue Gold (ASX:BGL) - Managing Director, Steve Parsons

" Bellevue Gold (ASX:BGL) completes $200m loan facility

Bellevue Gold (BGL) has executed a project loan facility totalling $200 million with Macquarie Bank (MGQ).

" Rafaella Resources (ASX:RFR) plans to use green energy at Santa Comba in Spain

Rafaella Resources (RFR) has signed a memorandum of understanding (MOU) with Spanish renewable energy developer Capital Energy Read after it adopted an Environmental,