Ann: South Korea Expansion, page-3

South Korea expansion Jatcorp Limited (ASX: JAT) is pleased to announce its first distribution agreement for expansion into South Korea.
As announced to the ASX on 16 December 2020, JAT’s manufacturing subsidiary, ANMA, has been approved by the South Korean regulatory authority, KFDA, for exporting its dairy based nutritional products into the Korean market.
JAT also announced that it was negotiating with Korean companies for the export of JAT’s Jinvigorate products.
JAT has signed a sole agency agreement with Max Core Med Co Ltd to sell and distribute in South Korea JAT’s milk powder brand “Jinvigorate Diabetics Formula”. The sole agency relates only to the 600g can manufactured by ANMA. The agreement has a term of two years. The agreement provides for a minimum order by Max Core in the first year of $2.4 million (ex-factory) and $4.8 million (ex-factory) in the second year.
In the event that the minimum orders are not met, JAT is entitled to terminate the sole agency. The agreement can also be terminated for any breach of the agreement which is not remedied within 30 days. There are no conditions precedent. JAT CEO Wilton Yao stated: “We are delighted to have secured entry into the South Korean market in partnership with Max Core. We are confident based on their track record that the team at Max Core will achieve the minimum sales targets and more. JAT is now seeing the benefit of the expenditure incurred in expanding our ANMA manufacturing facility. The greater capacity will allow JAT to increase its product range and volume to be able to enter the Korean and other world markets.” This announcement is authorised by JAT’s Managing Director, Wilton Yao.