RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:FutureAnd where did you find the terms of the new distribution agreement as being 3 and 3 as this was not in the NR where both companies heralded their great working relationship.
EDMONTON, Alberta, March 10, 2022 (GLOBE NEWSWIRE) -- Ceapro Inc. (TSX-V: CZO; OTCQX: CRPOF) (“Ceapro” or the “Company”), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced the signing of a long-term agreement with German-based multinational, Symrise AG, for the distribution and commercialization of Ceapro’s high value active ingredients to major key international players in the cosmetic market.
Under the agreement, Symrise is guaranteed to purchase minimum annual volumes of Ceapro’s high value active ingredients. Financial terms of the agreement were not disclosed.
“Symrise has been and will continue to be a valued, committed partner and we are very pleased to have renewed this agreement with them. This agreement not only provides security for our ongoing cosmeceuticals base business but also is expected to enable us to accelerate the growth of that base business through the potential to expand the list of exclusive customers to Symrise. We are delighted for the vote of confidence towards our Company and especially for the recognition of the quality and uniqueness of Ceapro's products,” said Gilles Gagnon, President and CEO of Ceapro. “We are confident that our partnership with Symrise, one of the most respected player in our industry, will continue to equally aid in the achievement of our common goals" he added.
“Ceapro and Symrise have a long-standing relationship in product development that has benefitted both companies over the years,” said Joern Andreas, President Cosmetic Ingredients Division, Symrise AG. “We see great value in this partnership and are very pleased to have secured this agreement, which will continue to pave the way for future developments that I believe will benefit both companies in creating value.”
prophetoffactz wrote: "There's a significant difference and no shame with promoting a company with a solid and profitable business so it trades at fair value"
What's the value of a business dependent on a 3 year agreement with its major distributor with a 3 year option? What happens if they go elsewhere in the next 2 years? Does CZO need to get control of distribution to see a higher multiple? If CZO had its own distribution with clearer control over the next ten years as opposed to next three could it double the multiple?
"CZO has a solid base business and a solid R&D pipeline."
We will know how solid the pipeline is once full data packages are released and validation is received from deals. We are still early and before the crowd; but we can get in for next to no cost as long as we are willing to wait.