Bon Natural Life signs $16 million distribution deal for gut health products

XI’AN, China - Bon Natural Life Limited (NASDAQ:BON) has entered into a non-exclusive sales distribution agreement with Beijing Huahai Keyuan Technology Co., Ltd. to market its natural prebiotic series products in China, according to a press release statement issued Wednesday. The company, which generated revenues of $23.8 million in the last twelve months, maintains a healthy current ratio of 2.42, indicating strong short-term financial stability. InvestingPro analysis suggests the stock is currently trading below its Fair Value.

The 24-month agreement has a potential contract value of up to $16 million, representing a significant opportunity given analysts’ expectations of sales growth this year. Under the terms, Huahai Keyuan will handle marketing, sales and distribution of BON’s prebiotic products throughout the Chinese market. InvestingPro data reveals 20 additional key insights about BON’s financial outlook.

BON’s product line features what the company describes as a "Prebiotic + Postbiotic" complex centered around stachyose as the main active ingredient. The formulation is designed to support gut microbiota health.

"As a global leader in ’prebiotic + postbiotic’ health solutions, we are thrilled to launch a premium gut health product with robust and sustained bioactive properties, and to establish a distribution partnership with Huahai Keyuan," said Yongwei Hu, Chairman and CEO of BON.

Hu noted that Huahai Keyuan has experience introducing health products to the Chinese market and a track record in market expansion.

Bon Natural Life Limited is a Cayman Islands-registered company operating in the natural, health, and personal care industries. The company’s shares are listed on the Nasdaq exchange.

In other recent news, Bon Natural Life Limited has entered into a significant $32 million exclusive cooperation agreement with Beijing Huahai Keyuan (Tech) Co., Ltd., focusing on the distribution of its patented postbiotic hypoglycemic ingredients over a 36-month period. Additionally, the company has secured an $18 million non-exclusive sales distribution agreement with Tianjin Merrill-Youli Trading Co., Ltd. for its Ambroxide and related fragrance compounds in the Asia-Pacific region. In terms of corporate actions, Bon Natural Life has initiated a $1 million share buyback program, allowing the company to repurchase its Class A ordinary shares depending on market conditions and other factors.

The company is also facing potential delisting from the Nasdaq Stock Market due to non-compliance with the minimum bid price requirement, having received notifications after its shares closed below the $1.00 threshold for a sustained period. Despite these challenges, Bon Natural Life is appealing the delisting decision and exploring options to regain compliance. On the product front, the company has launched a new series of sleep health products featuring a proprietary Glucoraphanin-Myrosinase delivery system aimed at enhancing the bio-activity of glucoraphanin. These developments reflect Bon Natural Life’s ongoing efforts to expand its market presence and product offerings while navigating regulatory and market challenges.

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