eSense-Lab Ltd (ASX:ESE) continues to achieve strategic and operational milestones as it progresses a commercialisation strategy for evidence-based terpene product development for medicinal and wellness uses.
Signed contracts and partnership agreements during the first half of 2020 have positioned the company to increase sales and revenue growth as it demonstrates the broad range of applications for its terpenes.
Contracts and JVs
In this period eSense has secured three agreements to supply its unique terpenes across multiple revenue-generating markets.
An exclusive sales agency contract has also been executed targeting A$10 million of product sales in the lucrative US market over five years.
eSense has signed joint venture agreements with initial orders anticipated to provide revenue of approximately A$950,000 to the company and it is working towards more large revenue joint-venture opportunities.
Establishing joint ventures for mutual development of products with different partners allows the company to position itself across multiple revenue-generating markets.
eSense CEO Itzik Mizrahi said: “We have worked hard to achieve a number of strategic and operational milestones over the last four months and are proud of the progress to date.
"In addition to their therapeutic and wellness benefits, our terpenes have exciting possible applications in a post-COVID world and are focused on being well-positioned to service this growing market.
"We are hard at work continuing to pursue more joint-venture opportunities and researching further potential applications of our technology.”
Leveraging core technology
The company has also made important changes to its leadership team and business strategy as it seeks to best leverage its core terpenes technology for revenue growth.
Under this guidance eSense has signed agreements across a range of markets:
- SeaLaria (LOI) – Therepeutic skin creams and sanitiser;
- ANC – Skin care, hair care and hand sanitiser;
- Wise Wine – Hand and surface sanitisers; and
- Blue Science – Hand and surface sanitisers.
This approach is favoured by eSense as it reduces the upfront capital expenditure required to expand global reach and significantly reduces costs associated with sales and distribution.
Since inception of this strategy, the company has been able to leverage the distribution channels of its partners to gain access to four major global markets – Israel/Middle East, Australia, China and the US.
Key Blue Science agreement
A key agreement in the commercialisation strategy was signed this month through an exclusive Sales Agency Agreement with Blue Science Solutions Inc to expand into the worlds largest consumer market for terpenes-based products, the United States.
Blue Science is an established US-based company that delivers non-toxic cleaning and disinfecting solutions across a variety of industries.
Access to IBM network
A crucial aspect of this new partnership for eSense is access to the IBM Rapid Supplier Connect Network.
This network makes it possible for buyers and suppliers, including non-traditional suppliers joining the fight to help keep hospitals and key support organisations ready, to quickly find each other, accelerate verification and onboarding processes, and gain near real-time insights into inventories of life-saving equipment.
Other benefits for eSense include:
- Access to Blue Sciences scientists to assist in product development;
- An exclusive agreement covering the distribution in the US of all terpenes-based pRead More – Source