No mention of a minimum but from this they are expected to buy at least $250k in the first year or it would say 'future orders' etc.
'an initial deposit of US$250,000 in cleared funds (to be offset against orders in the first year)'
And the announcement also states that volumes are expected to increase each year.
Of course there is no guarantee they will actually buy anything & the agreement would then be cancelled but at least they will book $250k of revenue as the deposit won't be refunded.
But if that happens again then it doesn't say much for the future of the business where customers can't on sell the Zoono products.
Personally i think that Zoono products aren't that easy to sell without proper education / belief in the product to convey it's benefits to the end customers. Which is why i don't think the retail products will be successful & not worth the effort & distraction when they can sell directly to the end customer.
Zoono have said they are moving to an end customer model rather than a distributor model, this i believe is the far better approach. Demonstrating the product directly a large customer will provide a much better return for resources employed. Once demonstrated & proven, repeat sustainable orders will follow with little or no effort. This is where Zoono needs to get to, $1m+ orders a quarter & we'll be back above 20c again.
ZNO Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
