Bon Natural Life signs $22 million distribution deal for weight loss line

Published 21/07/2025, 14:18
Bon Natural Life signs $22 million distribution deal for weight loss line

XI’AN, China - Bon Natural Life Limited (NASDAQ:BON), currently trading at $1.41 with a market capitalization of $5.3 million, has entered into a non-exclusive sales distribution agreement with Beijing Huahai Keyuan Technology Co. Ltd. to sell and distribute its natural weight loss product line across China and Southeast Asia, according to a press release statement.

The 36-month agreement has a total contract value of $22 million, nearly matching BON’s current annual revenue of $23.8 million. The products feature a compound formula centered on "prebiotics + postbiotics," which the company describes as a formulation that delivers weight loss results without requiring restrictive dieting. According to InvestingPro data, analysts expect sales growth in the current year, though the company faces some cash flow challenges.

Huahai Keyuan specializes in marketing original health products in China. The partnership aims to help BON enter China’s weight management market. With a current price-to-book ratio of just 0.12 and trading below its Fair Value according to InvestingPro analysis, the company shows potential despite recent market challenges.

"As a global participant in ’prebiotics + postbiotics’ health solutions, we’re thrilled to introduce our new line of advanced, sustained-action weight management supplements," said Yongwei Hu, Chairman and CEO of BON.

Bon Natural Life Limited is a Cayman Islands-registered company that provides bio-ingredient solutions in the natural health and personal care industries.

The company’s weight management products are designed to eliminate the need for significant lifestyle changes, which the company claims improves user compliance for long-term weight management.

In other recent news, Bon Natural Life Limited has announced several significant developments. The company regained compliance with Nasdaq’s listing requirements, ensuring its continued presence on the exchange. This follows a formal notice from the Nasdaq Hearings Panel confirming Bon Natural Life met the Minimum Bid Price Requirement. Additionally, the company has secured a $32 million exclusive cooperation agreement with Beijing Huahai Keyuan to distribute its patented postbiotic hypoglycemic ingredients in China. In a separate deal, Bon Natural Life signed a $16 million agreement with Beijing Huahai Keyuan Technology for the distribution of its prebiotic products. Furthermore, an $18 million distribution deal was made with Tianjin Merrill-Youli Trading for fragrance products in the Asia-Pacific region. The company also initiated a $1 million share buyback program, aiming to repurchase Class A ordinary shares in the open market. These developments highlight Bon Natural Life’s strategic efforts to expand its market presence and product distribution.

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