These deals are made as a collaborative process, not a combatitive big guy/little guy stoush (that process just would leave TIS with a sour taste in it's mouth and doesn't do the distributor any favours.) TIS will be entering into a partnership with a big pharma distributor (informal forum consensus appears to be favouring S&N, given the board's connections).
So, TIS has a target ideal for the terms of the deal. They express these to the prospective distributors. Obviously the distributors will have an idea of what they want. they thrash out a compromise - TIS doesn't want to compromise that much. What's the next step? Well, I would be saying "OK, given this is what we are wanting to get, what are we going to have to do for you to come up to our target? The big pharma company would specify X,Y and Z. TIS does the sums on how much it is going to cost to get X Y and Z done and decide it's worth holding out, raising the capital and doing the work.
Everyone has to remember that the distributors are selling themselves to TIS as much as TIS is selling Vitrogrow to them. TIS also wants to license Vitrogrow for specific applications, not hand the product entirely over to the distributor. Being able to supply a finished product to the distributor allows them to control this.
As to the storage issue - freeze dried seems to be the way to go, but -20 deg is no big deal either - liquid nitrogen can achieve this and every domestic freezer freezes at -18 deg.
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