Vegaste Technologies Secures Minimum C$33.0 Million Purchase Order In New Partnership Agreement
Vegaste Technologies (CSE: VEGA) this morning announced that it has entered into a partnership agreement with Liv Marketplace. The partnership agreement will see a minimum purchase order of C$33.0 million for Vegaste’s products, along with the construction of a flagship brick and mortar PlantX marketplace within San Diego, California.
The partnership agreement will see Liv Marketplace become the exclusive online fulfillment partner and retail distributor of PlantX’s products within the US. The company will also build and operate retail locations, coffee shops, and cafes within the US under the PlantX banner. The first of these locations is set to open December 1, 2020.
In addition to the C$33.0 million minimum purchase of product in the first year of the agreement, Liv will pay to Vegaste a 6% royalty on the gross revenue generated from the arrangement. As a result of the structure of the partnership agreement, Vegaste will not have to incur additional US labour costs, while having no carrying costs for its inventory in the US.
The physical location, expected to open this December, is expected to be over 4,500 square feet in size while showcasing the firms plant-based products. The location will also bring PlantX’s meal delivery service to the US, in perhaps the most ideal location across the country: California.
The company is conducting a live conference call this morning to discuss the partnership. The meeting takes places at 10:00 AM EST, with the Zoom meeting link found here.
Vegaste Technologies last traded at $1.14 on the CSE.
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