Dotz Nano Limited (ASX:DTZ) has entered into an agreement with Universal Exports Group (UEG), a Hong Kong-based corporation specialising in wholesale distribution, to supply anti-counterfeiting capabilities to facemasks required for government stockpile and National Health Services (NHS).
UEG has contracted to purchase 100 million of Dotz unique anti-counterfeiting, tracing and authenticating ValiDotz products in an agreement worth $US1 million (A$1.53 million).
The initial order is for the ValiDotz products to be applied to 30 million masks with a follow-up order of up to 70 million masks, subject to customer demand.
As part of the agreement, UEG will become the sole and exclusive distributor for Dotz in the South Africa and China markets for a period of two years, for items such as facemasks, medical gowns, medical gloves and other protective gear.
“Unique technological solutions[hhmc]
Dotz chairman Bernie Brookes said: “This significant agreement for the company is a direct outcome of the recent strategic focus and efforts initiated by the board and management.
“It clearly demonstrates the strong relevance and business potential of Dotzs unique technological solutions, aimed at improving worldwide trade, during and post the COVID-19 pandemic.”
Under the agreement, Dotz shall grant UEG 3 million unquoted options with exercise price of 4.8 cents vesting on a pro-rata quarterly basis over the 2-year term of the agreement, with a term of three years from the date of the agreement.
Dotz is expected to receive A$1.53 million in revenue over the term of the agreement.
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