$2.3mil revenue deal!

The following announcement was made today by Citrofresh International, the old Plexus International. For some reason hotcopper doesnt accept the ASX cdoe for Citrofresh which is CTF.

ACQUIISTION OF FURTHER MARKETING AND DISTRIBUTION RIGHTS

Citrofresh International Ltd’s (“CTF”) Marketing and Distribution Agreement with respect to the Citrofresh products has been revised. Under the terms of the original agreement, customers of GDM Technologies Pty Ltd (“GDM”) (the manufacturer of and holder of the
intellectual property over the Citrofresh products) in Chile and Japan were to remain customers of GDM, with CTF receiving a commission on sale of products to those
customers.

CTF and GDM have agreed that Chile and Japan (including all existing customers of GDM in those two countries) will now be included in CTF’s exclusive, worldwide rights to market and distribute Citrofresh products. This is a positive development as the revenue earned by GDM from the Chile / Japan market over the 12 months to June 2004 was approximately $2.3 million and GDM believes that further growth in that market is imminent with the proposed appointment of a new sub-distributor that would provide marketing and distribution
capabilities across a number of South American countries.

The consideration payable by CTF to GDM for this amendment to the Marketing and Distribution Agreement will be satisfied by the issue of 2 million shares and 1 million options (CTFO class).

End

Based on the perceived margins, that should generate the company a gross profit in the order of $1mil with growth to come. With a $7mil market cap, seems good value to me.

Canadian Bunny