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MONTREAL, Sep 17, 2020 (GLOBE NEWSWIRE via COMTEX) —
Relevium Technologies Inc. (TSX.V: “RLV”, OTC: “RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”) is pleased to announce that its wholly-owned subsidiary in the US, BGX E-Health LLC ( “BGX”), has secured a USD$20 Million contract to supply critical PPE to the Canadian Health Care Market with deliveries starting the week of September 20 and ending by the first week of October 2020.
Compared to revenues recorded during the fiscal year ended June 30, 2019, this initial contract is expected to increase forecasted yearly revenues for the year ending June 30, 2021 by an estimated 660%, from CAD$4.05M in 2019 to a forecasted CAD$30M for 2021.
INITIAL CONTRACT TO SUPPLY PPE FOR CRITICAL NEEDS IN CANADA
The COVID-19 global pandemic has created significant gaps in the supply of PPE and the Company, in partnership with the H-Source platform, has developed of a strategic supply chain that provides effective access to the required products.
BGX E-Health, the Company’s US wellness subsidiary has secured its first contract to supply critical PPE (Personal Protection Equipment) to authorized medical distribution companies located in Canada and aimed to satisfy urgent needs of healthcare institutions across Canada. The contract requires BGX to supply several hundred million examination gloves as well as other critical supplies between September and early October of this year, with a total value of this initial contract USD $20 million or approximately CAD$26.4 million. The Company will receive full payment in cash on delivery and the full contract value is currently held in escrow for the benefit of BGX.
In addition to the cost of acquisition, sourcing and logistics, the Company has entered into sales commission agreements with several intermediaries on both, supply and sourcing sides and will pay sales commissions of approximately 10% in cash and 5% in share purchase warrants with a term of 12 months and a strike price of $0.05 subject to successful execution and delivery of the products. The price of warrants was calculated based on closing price plus a 67% premium and the issue is subject to the approval of the TSX Venture exchange.
The Company expects to provide more details after the fulfillment of the full contract.
Aurelio Useche, CEO of Relevium stated “We have been working diligently in response to the ongoing global pandemic, to execute on the combined PPE supply strategy with our joint venture partners H-Source Holdings. This initial Contract marks a major milestone for both companies and validates the Joint Venture between the companies as announced on July 13, 2020”.
BGX E-HEALTH AND H-SOURCE EXECUTE ON STRATEGIC SOURCING JV
On July 13, 2020 the Company entered into a joint venture and cooperation agreement with H-Source Holdings to develop a global strategic angle for sourcing and supplying PPE. The Company, in partnership with H-Source, has completed several multi-channel sourcing contracts in North America and South East Asia, to secure the supply chain strategy for the companies and begin the delivery of the PPE in the next two weeks. The supply chain strategy between H-Source and BGX will also ensure the fulfillment of future contracts to be acquired over the next several months as countries around the world prepare for a second wave of Covid-19.
John Kupice, CEO of H-Source stated, “We are delighted to join forces with BGX and leverage our secure platform to ensure the safe and efficient supply of PPE for the Canadian market. This contract validates the strength our JV and we look forward to build a combined strategy for further developing the global market for PPE”
About Relevium Technologies
Relevium is a publicly traded Company that operates in the health and wellness industry, including legal cannabis, with a primary focus on online distribution. The principal business of the Company is the identification, evaluation, acquisition and operation of brands and businesses in the health and wellness markets and medical cannabis. The Company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness consumer products. Relevium operates through two wholly owned subsidiaries:
BGX E-Health LLC (BGX), based in Orlando, Florida, markets dietary supplements, nutraceuticals, sports nutrition, and cosmeceuticals primarily through its Bioganix(R) brand portfolio in the US and Europe. Relevium’s premium brands are sold at some of the world’s largest retailers including Walmart.com and Amazon.com.
Biocannabix Health Corporation (BCX), based in Montreal, Quebec, is a biopharma nutraceutical Company focused on delivering pediatric endo-medicinal nutraceuticals for cannabinoid therapy.
About H-Source Holdings Ltd.
H-Source Holdings Ltd. is a technology company operating within the healthcare industry through its wholly owned subsidiaries, H-Source, Inc. and H-Source Distribution, Inc. The Company has developed a private, secure, and trusted transaction platform that allows member medical facilities including hospitals and ASC’s (Ambulatory Surgery Centers) to buy, sell, track, and transfer medical devices and supplies, pharmaceuticals, and capital equipment with each other. Member medical facilities can conduct secure transactions within their private groups or global platform members. This marketplace network is specifically designed to reduce health care costs and medical product waste, increase cost recovery, and enable supply chain transformation and efficiency.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian and United States securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions, or expectations of future performance, are forward-looking statements and contain forward-looking information. Generally, forward- looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, or “would” occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek to rely on the applicable safe harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
President and CEO
For more information about this press release:
RELEVIUM TECHNOLOGIES INC
Email: [email protected]
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The MarketWatch News Department was not involved in the creation of this content.