RE:Upfront Fee Material Information? Market thinks it's not much better than R+F deal......
Manufacturing and Supply Agreement with Rodan & Fields, LLC (“R&F”)
On September 13, 2019, the Company entered into a manufacturing and supply agreement, pursuant to which the Company shall manufacture, test, label, package, store and supply R&F a minimum of 10 kilograms per year of skin lightening compound TFC-1067 for use in the United States, Canada, Australia and Japan for US$8,000 per kilogram beginning in 2020.
In consideration for these services, R&F shall also make the following license fee and milestone payments to the Company:
i. US$50,000 ($67,225) license fee on signing of the agreement (recorded as revenue in fiscal 2019 and receivable at October 31, 2019);
ii. US$50,000 milestone payment on the launch of the first finished skincare product which includes TFC-1067; and
iii. a US$50,000 milestone payment for each additional finished skincare product launched containing TFC-1067.
After receipt of an invoice, R&F will pay the Company within net 15 days -2% or 60 days.