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XI’AN, China - Bon Natural Life Limited (NASDAQ:BON), currently trading at significant discount to its InvestingPro Fair Value, has entered into a non-exclusive sales distribution agreement with Tianjin Merrill-Youli Trading Co., Ltd. to distribute its Ambroxide and related natural fragrance compounds in the Asia-Pacific region, according to a press release statement issued Monday.
The 36-month agreement has a potential contract value of up to $18 million, representing a significant opportunity given BON’s current annual revenue of $23.8 million. Under the terms, Merrill-Youli will market and distribute BON’s products primarily targeting the industrial fabric fragrance sector.
Ambroxide is a synthetic molecule used in perfumery as a cruelty-free alternative to natural ambergris, which comes from sperm whales. The compound has expanded from traditional perfumery into the fabric fragrance market.
The company also reported progress on developing a biosynthetic alternative to Sclareol, the key natural ingredient used to produce Ambroxide. The project, which began in 2023, is reportedly on track for commercial launch.
BON stated that production capacity is expected to increase from thousands to tens of thousands of tons per year, with the new process offering cost savings.
Bon Natural Life Limited is a Cayman Islands-registered company operating in the natural, health, and personal care industries. The information is based on a company press release.
In other recent news, Bon Natural Life Limited has announced several significant developments. The company has initiated a $1 million share buyback program, allowing it to repurchase Class A ordinary shares in the open market. This initiative will be managed by TradeUp Securities under a Purchase Plan Agreement. Additionally, Bon Natural Life has secured an exclusive $32 million cooperation agreement with Beijing Huahai Keyuan, focusing on the distribution of its patented postbiotic hypoglycemic ingredients over the next 36 months.
In another strategic move, Bon Natural Life entered into a $12 million supply agreement with Shanghai Yunsheng to co-develop health solutions using apple polyphenols. The company also launched a new series of sleep health products featuring a proprietary delivery system aimed at enhancing glucoraphanin’s bio-activity. However, Bon Natural Life faces challenges as it is currently under threat of delisting from the Nasdaq Stock Market due to non-compliance with the minimum bid price requirement. The company has filed an appeal and is exploring options to regain compliance. These recent developments highlight Bon Natural Life’s efforts to expand its market presence while navigating regulatory challenges.
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