Relevium’s BGX E-Health Secures US$20M Contract for Supplying PPE to the Canadian Market for Q1 of the Current Fiscal Year
MONTREAL, Sept. 17, 2020 (GLOBE NEWSWIRE) -- Relevium Technologies Inc. (TSX.V: “RLV”, OTC: “RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”) is pleased to announce that its wholly-owned
subsidiary in the US, BGX E-Health LLC ( “BGX”), has secured a USD$20 Million contract to supply critical PPE to the Canadian Health Care Market with deliveries starting the week of September
20th and ending by the first week of October 2020.
Compared to revenues recorded during the fiscal year ended June 30, 2019, this initial contract is expected to increase forecasted yearly revenues for the year ending June 30, 2021 by an estimated 660%, from CAD$4.05M in 2019 to a forecasted CAD$30M for 2021.
INITIAL CONTRACT TO SUPPLY PPE FOR CRITICAL NEEDS IN CANADA
The COVID-19 global pandemic has created significant gaps in the supply of PPE and the Company, in partnership with the H-Source platform, has developed of a strategic supply chain that provides effective access to the required products.
BGX E-Health, the Company’s US wellness subsidiary has secured its first contract to supply critical PPE (Personal Protection Equipment) to authorized medical distribution companies located in Canada and aimed to satisfy urgent needs of healthcare institutions across Canada. The contract requires BGX to supply several hundred million examination gloves as well as other critical supplies between September and early October of this year, with a total value of this initial contract USD $20 million or approximately CAD$26.4 million. The Company will receive full payment in cash on delivery and the full contract value is currently held in escrow for the benefit of BGX.
In addition to the cost of acquisition, sourcing and logistics, the Company has entered into sales commission agreements with several intermediaries on both, supply and sourcing sides and will pay sales commissions of approximately 10% in cash and 5% in share purchase warrants with a term of 12 months and a strike price of $0.05 subject to successful execution and delivery of the products. The price of warrants was calculated based on closing price plus a 67% premium and the issue is subject to the approval of the TSX Venture exchange.