FULL DISCLOSURE: This is sponsored content for Power Leaves Corp.
Power Leaves Corp has officially entered the Canadian market with the signing of a coca extra supply agreement. The agreement follows a similar agreement entered into in the US by the company for its decocainized coca leaf extract last month, its first such supply arrangement.
The latest transaction is with an undisclosed Canadian food and beverage company, whom has made an initial order of 2,500 litres of the coca extract developed and manufactured by Power Leaves. At an agreed to price of $100 per litre in the first twelve months, the order amounts to US$250,000 – which exceeds sales projections established by Power Leaves for 2023.
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As part of the order, Power Leaves has granted exclusive rights for the use of the coca extract in the product categories of coffee products, sparkling water products, and gum products within Canada. The rights however do not include other product categories, or the coca essence or DeCarb products also produced by Power Leaves.
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To maintain the exclusive rights, the Canadian company must purchase 625 litres per quarter in Year 1 of the agreement, which expands to 6,250 litres per quarter for Year 2, while maintaining the $100 per litre price point.
“We are very excited about the signing of this supply agreement. It not only confirms the demand and excitement in the market for our coca products, but it ensures Power Leaves remains on track to meet its revenue projections for 2023 and beyond. The market clearly understands the potential of this ingredient, and savvy operators are looking to lock-up exclusivity for their territory and product categories,” commented Pat McCutcheon, CEO of Power Leaves.
FULL DISCLOSURE: Power Leaves Corp is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Power Leaves. The author has been compensated to cover Power Leaves on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
