Delay to Varm Cosmo White Label Cosmetics Supply Contract
The Board has continued its discussions and negotiations with Varm Cosmo during the June quarter, to assist Varm Cosmo to meet their contractual obligations to MGC Derma, under the Binding Sale Agreement announced on 31 October 2017, and the Purchase Order announced on 14 November 2017, for supply of $8,000,000 of bulk cosmetics product and an initial $1,000,000 pre-payment on this purchase order.
The MXC Board and Management have been very frustrated and disappointed by the ongoing delays, and to date non-performance by Varm Cosmo under the binding agreements during 2018, but have tried to assist Varm Cosmo in completing their delayed product line launch as it would be materially beneficial to MGC Derma, the Company and all MXC shareholders.
In correspondence during June with the Varm Cosmo CEO, he advised the Company that Varm Cosmo were “currently completing retail and distribution pipelines”, and intend to be moving forward with MGC Derma in the coming months. The Company will keep shareholders informed immediately as any material information on the progress of this first binding contract and purchase order with Varm Cosmo.
MXC Price at posting:
6.0¢ Sentiment: None Disclosure: Not Held
