Relevium Technologies Announces Important New Distribution Agreement
Ongoing research has presented a staggering number of health and wellness breakthroughs in recent years and the list continues to grow as more people take active steps towards healthier living. This has led to a rapidly growing subsector of ‘nutraceuticals’ – products and supplements offering specific health benefits that are available over-the-counter to consumers.
Now consider the trend for E-Commerce and the growing segment of consumers that shop and order products online. This means that marketing opportunities can be tailored to reach out to a larger group of people, and companies may do so in ways that are more cost-effective than the traditional storefront retail paradigm.
The confluence of these two key growth trends is what has powered Relevium Technologies Inc (TSXV: RLV – $0.21 & Fra: 6BX – €0.14) on a growth curve of its own. Relevium has adopted a business model in which it develops products in-house, acquires strong competitors, and forms partnerships with up and coming companies in the neutraceutical space. Thanks to this strategy, the Company has been able to build sales leverage to an impressive inventory of products in the health and wellness sector.
Meanwhile, the Company has also developed effective marketing techniques and high volume online distribution channels. As its sales continue to increase, Relevium builds greater clout to negotiate new marketing agreements in partnership with third parties.
Relevium has now risen to sustainable sales of $100,000 per week, a plateau that also puts the Company above the breakeven milestone to where it is now generating an operating profit. Part of the business plan is based on the potential to improve each of the companies involved in its acquisition strategy, through its experienced management team and staff. The integration process involves fine-tuning the operations for a new acquisition to increase efficiency, and exploring enhanced marketing opportunities to generate growth.
This same approach has enabled the Company to deliver higher sales when working in distributorship agreements with third party product developers. By arranging exclusive licensing deals to market established products, Relevium is able to create rapid sales growth using existing online distribution channels.
The Agreement With Tersus Life Sciences
This week Relevium announced its latest distribution agreement, in partnership with Tersus Life Sciences. The centerpiece of this deal is Tersus’ patented ultra-purified line of Omega 7 fatty acids under the Provinal brand name. These Omega 7 products offer benefits related to lower insulin resistance (a factor in the prevention of diabetes). It has also been shown effective to reduce atherosclerosis and inflammation, and to lower incidence of hepatic fat accumulation, with no known side effects.
The terms of the deal involves a 2-year exclusive distribution agreement where Relevium can market and distribute Provinal products on defined online sales channels in North America. Following the completion of the two year period, the arrangement may be evaluated by both parties, and subject to negotiation for an extension. The companies may also choose to consider expansion to other countries as agreed upon on a case-by-case basis.
An exciting aspect to this agreement is the fact that research investigating the properties of Omega 7 fatty acids is still in the very early stages. New breakthroughs are still emerging and exciting therapeutic applications are still under development. The demand for Provinal products is bound to grow further as more people become aware of the health benefits, and new analytical reports are released to further validate the capabilities of this patented, ultra-purified fatty acid blend.
Omega 7 fatty acid products are well established in online sales, and the growing market is estimated to reach several billions of dollars in worldwide sales by 2025. This is an enormous market, and the partnership with Tersus creates the potential for material sales growth for Relevium.
Relevium also has the right to appoint sub-licenses with approval by Tersus, to create additional marketing channels for the product line.
The Potential For Additional Products In The Pipeline
The Omega 7 products will be launched using the Relevium BioGanix brand name, and sales are expected to commence early in 2018.
The agreement also grants Relevium the right of first refusal to review and evaluate newly formulated products created by Tersus. In addition, Tersus Life Sciences has other product lines on the market today that are not currently included in the terms of this agreement, but may yet become available for future marketing arrangement similar to the Omega 7 deal.
One of the strategies employed by Relevium Technologies to accelerate sales relies on data mining to identify new products and trends that have greater growth potential. The objective is to ensure the Company is positioned early in the growth curve to win market share with products that have high demand. Omega 7 is such a product that has the potential to materially increase Relevium’s sales.
Moreover, this deal may be seen as a win-win proposition. Tersus Life Sciences selected Relevium for this distribution agreement because the Company has already demonstrated its proficiency to achieve high sales growth. And for Relevium, the deal broadens its product offering, with the potential to add other products in the future.
In fact, if both participants achieve their expectations, it could be the first of several profitable business arrangements between these two companies as they leave the door open for expanding the relationship and developing new opportunities.
With the prospect of overall profitability at hand for Relevium, new products that boost sales will contribute to the bottom line for shareholders and contribute to a higher share price premium. Recommendation Buy
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