The Board of BPH Global Ltd (ASX: BP8) (Company) announces that the Company has entered into a legally binding Term Sheet (Term Sheet) with Australian-based company Nutura Organic Ltd (Nutura) for the purchase of adult milk formula to enable the Company to undertake a pilot study in China.
Highlights
Purchase of adult milk formula to commence pilot study in ChinaProposed development of adult milk formula products infused with TCM ingredients including sialic acid and nutraceuticals extracted from raw birds’ nest and seaweedFocus on sales and distribution in China
As part of it continuing focus on opportunities to purchase or produce food products which deliver Traditional Chinese Medicine (TCM)-based outcomes, the Company is keen to undertake a pilot program in China to test the market for the sale and distribution of Nutura’s Adult Milk Formula and the opportunities to infuse that formula with TCM-based ingredients including sialic acid and nutraceuticals extracted from raw birds’ nest and seaweed (Pilot Study).
By committing to purchase an initial quantity of the Adult Milk Formula, the Company can commence a pilot study in China to determine the feasibility and commerciality of selling the Adult Milk Formula infused with TCM-based ingredients in China, including:
The cost of shipping the Adult Milk Formula to China and clearing Chinese customs procedures and protocols;The cost of obtaining the TCM-based ingredients, either in Australia or China, and infusing those ingredients into the Adult Milk Formula;The cost of delivery of the Adult Milk Formula to retail outlets; andThe level of consumer demand.
Term Sheet
Key terms of the Term Sheet are as follows:
Product: Adult Milk Formula.Quantity and Price: 3,500 units at an aggregate purchase price of approximately AUD35,000, after a rebate provide by Nutura to support marketing and promotional activities associated with the Pilot Study (Purchase Order)Nutura to ensure that the Adult Milk Formula is GB compliant.The term of the Term Sheet is valid until completion of each of the Company’s and Nutura’s obligations regarding the Purchase OrderFuture Activities: Nutura and the Company will continue to discuss commercial opportunities for the supply of Nutura’s products in the Chinese markets for their mutual commercial benefit with a focus on the Adult Milk Formula infused with TCM-based ingredients and leveraging the Company’s sales and distribution network in China.
