ABT signs important sales agreement
ABT signs important sales agreementCategory: Press Releases
Aqua Bio Technology ASA (Oslo Axess: ABT) today announced an important contract with a US based personal care company. The customer will use ABT’s lead product Aquabeautine XL® as a key ingredient in a new line of facial skincare products. ABT will receive an up-front payment of USD 2 million.
“This is the second significant contract for ABT in less than three weeks, again confirming the potential of Aquabeautine XL® as a key ingredient in the next generation skincare products,” said ABT’s CEO Arvid Lindberg.
The customer is a New York based company founded by a team with a strong track record in the cosmetics industry. The new skincare product line will be launched in the third quarter of 2012. The customer has been granted partial exclusivity for the use of Aquabeautine XL® in skin care products distributed through department stores in certain US and European markets. While the up-front payment will be received now, additional revenues and royalties are expected from the beginning of 2013.
“The contract is an important milestone, as it enables Aqua Bio Technology to be EBITDA positive in 2012. The significantly improved revenue stream allows us to go forward in moving new products from the pipeline onto the market. We will also continue to increase revenues from the global distribution network established in 2011,” said Arvid Lindberg.
Aquabeautine XL® is a marine ingredient derived from salmon and developed with ABT’s proprietary and patented technology. Marine ingredients have the potential to replace petroleum-based ingredients, creating a new generation of sustainable, environmental friendly and gentle skincare formulations with high efficacy.