As exclusive distributor, ASVA will manage and distribute the Bioxyne Group’s products in the five countries. ASVA will be supported by Bioxyne’s direct sales system and platform, will focus on Bioxyne’s products and will be excluded from selling competing products. A first order of $200,000 has already been received.
Bioxyne’s CEO N H Chua said, “This initiative will give Bioxyne immediate access for its products to growing markets in the Asian region through established direct sales channels. This will allow the company to focus on developing Malaysia, where it has a direct selling license, and to work on other key markets in Asia.”
Call Option Deed
In addition, Bioxyne has entered into a Call Option Deed giving it the right to acquire a 70% interest in the business in each country before July 1, 2021. Consideration for the acquisition is based on an agreed multiple of EBITDA.
The call option deed acquisition price will be determined as the greater of: an agreed multiple of EBITDA in the 12 months preceding acquisition, less liabilities at the date of acquisition; or a multiple of net tangible assets.
At the election of the vendor, 50% of the acquisition price can be settled by the issue of Bioxyne shares at 85% of VWAP (volume weighted average price) in the 10 days prior to completion, subject to regulatory approvals.
The agreements have the usual commercial warranties and undertakings.
ASVA is a sales and marketing company established by the Dato Louis Chong group of companies. Dato Chong has sales and marketing experience in Thailand, the Philippines, Myanmar, Cambodia and Mauritius.
From 2007 to 2017, Dato Chong established a national chain of retail stores in those countries marketing health therapeutic equipment and wellness products. That business has since been acquired by a major Chinese company.
Bioxyne (incorporated in 2000), focuses on health and wellness products particularly in the gut and immune health areas. Bioxyne is in the consumer dietary supplements and functional foods markets through its proprietary probiotic, Lactobacillus fermentum VRI-003 (PCC).
Through an acquisition in New Zealand, now trading as Bioxyne International, the company is further developing a range of functional food and beauty products containing ingredients sourced exclusively from New Zealand, for direct sales channels.
Bioxyne’s probiotic business is supported by a manufacturing and distribution agreement with Chr. Hansen.