RooLife Group secures new product segments, sales orders and funding to fast-track growth in China
Food & Agriculture
Food & Agriculture
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Ecommerce player RooLife Group’s new AULife sales channel partnership in China is already delivering the goods within its first two weeks, with sales and orders of approximately $440,000 in two new lucrative product segments – milk powder and dairy food products – secured.
This follows initial sales revenue of approximately $190,000 of Australian milk powder products achieved in the last week of June.
So far in July, sales orders of approximately $250,000 for dairy food products have been received through new sales channels established with AULife.
To accelerate growth in these new product segments and sales channels, RooLife Group (ASX:RLG) has entered into agreements to obtain funding of an additional $600,000 by way of a combination of a convertible loan to the value of $200,000 from existing shareholder, Xiaodan Wu and $400,000 in loans from directors.
Plus, based on the expected growth from the partnership with AULife, RLG directors have agreed to provide an unsecured loan of $400k to accelerate and drive new sales in Q1 FY2024.
The key terms of the convertible loan with Wu, who is a Hong Kong based substantial shareholder in RLG, include 8% p/a interest rate plus five RLG shares for every $1 loaned, with a term of 12 months and right to convert to fully paid shares at $0.025.
Directors Bryan Carr and Warren Barry have provided unsecured short-term funding with the funds to be applied to accelerate sales through the newly established RLG and AULife partnership, focused on selling and distributing leading Australian brands to the Chinese market and the intention is to launch a dedicated e-commerce store for Australian brands on a major Chinese e-commerce platform.
“The immediate delivery of new sales and sales orders within the first two weeks of our partnership with AULife is really encouraging and importantly it is making an immediate contribution to gross profit,” CEO Bryan Carr said.
“We look forward to continuing to build on these revenue lines this quarter and the balance of this year as we service the demand for these products in China through the new sales channels we are establishing with AULife.”
This article was developed in collaboration with RooLife Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.