At face value, looks like a positive development for SKN.If the...

At face value, looks like a positive development for SKN.

If the deal is based on selling the Soleo brand of sunscreen into China, I do not think SKN will be successful. The Chinese market is not interested in Australian made sunscreen products, There is not one succesful, well established Australian sunscreen brand selling any decent volumes of sunscreen into China.

If it is for the paw paw products, then SKN will join a competitive market and they are very late to the “export paw paw products to China” party.

I also dont’t like this part of the announcement as a director is paid by SKN and meant to be representing SKN, now we have a significant double dip taking place:

Indian Ocean will receive the following fees for its services:
 a management fee of $10,000 per month over 6 months;
 a 6% fee on the Strategic Investment amount; and
 subject to shareholder approval, 5,000,000 shares and 5,000,000 Options (defined below).
 2.5% of sales for the services of the Guangzhou “China Team” in managing the sales process in Chinaon SKN’s behalf

It seems typical that SKN cannot release an announcement which contains a hint of positive news without the Directors putting their hands further into shareholder pockets.