RooLife secures in-store and online distribution deal with Chinese retail consortium
RooLife has appointed China Cross Border Trading Group to sell its products.
Digital marketing and e-commerce company RooLife Group (ASX: RLG) has appointed the China Cross Border Trading Group (CCTG) consortium to market its portfolio of products to retail outlets and online sales channels throughout the region.
The consortium will be responsible for identifying and driving general trade opportunities, with a view to extending RooLife’s reach and sales volumes in China.
The parties will work together to review and select products for launch and identify other in-demand products for CCTG to seek distribution and sales rights.
CCTG has a range of retail outlets and distribution centres in Zhongshan, Xi’an, Nanjing, Yiwu and Daqing.
Its enterprises in Guangdong will be among the first to benefit from the partnership with RooLife.
Share placement
RooLife has launched a $1 million capital raising with nominees of CCTG based on the issue of 38.4 million ordinary shares at $0.026 each, along with 4.8 million unlisted options exercisable at $0.05 on or before 30 November 2024.
The proposed placement will be subject to shareholder approval, with the shares subject to voluntary escrow for a period of six months from date of issue.
CCTG or its nominees will also be entitled to 1 million unlisted incentive options exercisable at $0.05 on or before 30 November 2024 for every $1 million generated in sales revenue with a minimum gross margin of $100,000 (or equivalent gross profit amount).
CCTG may earn up to 30 million options in the first 12 months by providing up to $30 million in revenue with an associated gross margin of 10% or $3 million (or equivalent) directly to RooLife.
Funds raised will be used for working capital to further assist with sales and marketing, continued e-commerce platform enhancement, and channel development for general trade and distribution in China.
Cross-border capabilities
RooLife managing director Bryan Carr said the partnership with CCTG supports the company’s strategy to provider cross-border sales capabilities in e-commerce and in-market general trade.
“This is a resounding endorsement for us and for the confidence [CCTG] has in its own sales capabilities with the investment in RooLife proposed at a strong premium to the current share price,” he said.
“The structure of this partnership closely aligns our combined interests [and] the sales and profit margin contribution from these new sales channels is expected to contribute significantly towards [our] profitability and market value.”
Mr Carr said the terms and conditions of the CCTG channel distribution are to be formalised in a binding agreement this week as a condition precedent and the deal will commence upon completion of the proposed placement.