Australian TAGLaw member, Piper Alderman, recently advised The Food Revolution Group Ltd (ASX:FOD) on a strategic distribution agreement and investment by Careline. The proposed distribution agreement provides FOD with access to Careline’s extensive product distribution network in China.
Careline is incentivised, through the issue and conversion of up to 280million Performance Shares at staged hurdles, to lift FOD’s revenue from $35 million per annum to up to $500 million per annum, marking this as a significant deal in the history of the company.
In addition, a new investment by Careline in FOD will provide FOD with up to $20.25 million in working capital to fund the development of distribution networks for FOD products into mainland China.
Bill Nikolovski, Executive Chairman, The Food Revolution Group Ltd said: “Working with Careline to move our existing and new products into China is a huge opportunity for our Company, as entry into the Chinese market has been a long-term goal for us.
We have been achieving strong growth of our branded products in Australia and with the partnership with Careline it will give us a step change in sales with access to the Chinese market.”
James Macdonald, Principal, Piper Alderman who advised FOD on the deal said: “Piper Alderman and Norton Gledhill have had a long standing relationship with FOD and we are delighted to be able to assist the company with this transformational transaction.”
