Biosenta Inc. Enters Non-Exclusive Distribution, Compounding and Logistics Services Agreement with New South Biolabs, LLC
TORONTO, March 26, 2013 /CNW/ - Biosenta, Inc. (CNSX: ZRO) (the "Company") is pleased to announce that it has entered into a non-exclusive distribution agreement with New South Biolabs, LLC to market and distribute the family of Zeromold products in the Southern USA, Caribbean Basin and South America. In addition to the non-exclusive distribution agreement, New South Biolabs will be responsible for the enterprise resource planning [ERP], production and customer relations management [CRM] within this territory. New South Biolabs will also have the non-exclusive opportunity to manufacture Zeromold within the territory. The distribution, sales and manufacture of Zeromold in the various regions within the territory will only commence in each jurisdiction once all regulatory and governmental authorizations have been obtained for each such jurisdiction.
New South Biolabs will pay a $600,000 mobilization fee to Biosenta, $300,000 of which was paid upon execution of the agreement. The second payment of $300,000 is due when Biosenta receives confirmation of the United States Environmental Protection Agency and the State of Florida of Zeromold product registration. New South Biolabs has also agreed to pay Biosenta a royalty equal to 30% of net profits from Zeromold product sold by New South to its accounts within the territory after New South Biolabs has recovered its fixed costs for the setup of the ERP and CRM components . Biosenta will continue to make its profit margin on the sale of all Zeromold products sold in the territory to Biosenta house accounts and in respect of the sale of product to New South Biolabs in its capacity as a distributor.
"This synergistic relationship has quickly borne fruit. The combined teams have already begun to execute as expected and deliver the logistics support and develop the marketing program for this territory" said Bruce Lewis, President and Chief Executive Officer of Biosenta. He added, "New South Biolabs presents a unique opportunity that will enable our Company to penetrate the USA market with Zeromold products in a geographic area that suffers heavily from black mould infestation."
About BIOSENTA Inc.
BIOSENTA Inc.'s line of retail anti-microbial products will effectively kill mould, bacteria and fungi on contact and prevent re-growth. These products address the demand created by the mounting health and environmental concerns. Mould can affect the immune system, nervous system, liver, kidneys, blood and cause brain damage.
BIOSENTA will also manufacture and distribute an anti-microbial filler. Calcium Carbonate is one of the most common fillers used industrially. It is susceptible like other fillers that hold moisture to attracting mould. Annual global revenue in the calcium carbonate filler industry approximates 140 billion dollars. BIOSENTA will produce anti-microbial filler that performs 'filling' and 'bulking' functions like calcium carbonate. BIOSENTA's filler product will not attract moisture and consequently mould infestation. BIOSENTA's filler with its anti-microbial high pH core in individual particles will enhance commercial product life and eradicate a broad spectrum of known bacteria, fungi, algae and other micro-organisms by suppression of their reproduction.
This release may contain forward-looking statements information and statements which constitute "forward-looking information" under Canadian securities law and which may be material regarding, among other things, the Company's beliefs, plans, objectives, estimates, intentions and expectations with respect to its capital and funding plans. Inherent in the forward-looking information and statements are known and unknown risks, uncertainties and other factors beyond the Company's ability to control or predict, which give rise to the possibility that the Company's predictions, forecasts, expectations or conclusions will not prove to be accurate, that its assumptions may not be correct and that the Company's plans, objectives and statements will not be achieved. Actual results or developments may differ materially from those contemplated by the forward-looking information and statements. Consequently, undue reliance should not placed on such forward-looking statements.
On behalf of the Board of Directors of BIOSENTA Inc.
The CNSX has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release. Neither the CNSX nor its Regulation Services Provider (as such term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.
SOURCE BIOSENTA Inc.