Expansion of evolis product line, page-24

The evolis Professional range was launched in Australia in June 2016 as anti-aging products for salons. The intention was that this range would be purchased by local salon owners for their business use with resale available to salon customers. Australians placing orders for these products therefore are only meant to be salon owners, who also would function as sales agents for the range.

The familiar products intended for Australian retail customers are available via direct purchase through the https://www.evolisproducts.com.au/ site or off-the-shelf from retail pharmacies. I assume that this arrangement allows salon owners to obtain a cut from sales of the Professional products through their restricted availability locally and therefore acts as an added incentive for their participation in the salon program.

The wide Professional range of branded products launched in the US market is available to retail purchasers there directly through the evolisprofessional website (where the country options are US, Mexico or Canada). The recent 4C report said that US web sales commenced in January. It is not clear whether the products would be immediately available or still in pre-order. High retail and salon distribution there also is planned.

So our options here appear to be direct purchase of the normal range via the evolisproducts site or from local pharmacies, or become salon customers if the Professional range is desired. I don’t know if the arrangement for shareholders to purchase directly from the Company at a discount is still in place. If so you might be able to convince them to sell you some Professional products to try.

Cheers