Special Report: eSense-Lab has appointed a US distributor as it seeks to enter one of the biggest consumer markets in the world.

eSense-Lab (ASX:ESE) has signed a deal that will open the door to US sales for its terpene based products.

The company entered into a sale agency agreement with Blue Science Solutions, an established US company that is using only natural ingredients to deliver non-toxic, yet powerful, cleaning and disinfecting solutions for the post-COVID world.

The contract is for an initial 12 months and has a combined $10m sales target over five years. Blue Science has committed to selling a minimum of $3m of products in the first 12 months in order to maintain exclusivity. It will receive a standard commission on all sales.

eSense says the deal will help its earnings profile while at the same time reduce costs associated in establishing a distribution and sales network in the US.

Blue Science was introduced to the Company by EverBlu Capital, the company’s mandated corporate adviser.  No fees are payable to EverBlu Capital Pty Ltd in relation to this introduction.

eSense will issue to Blue Science 10m CDIs at a deemed issue price of 1c each in return for Blue Science agreeing to distribute products through its networks.


Cost effective entry to the US

Blue Science plans to fast track and use its experience in North American markets to define the most suitable sales and distribution channels, as well as act as a local agent for eSense products in the US.

eSense says Blue Science will provide a cost effective entry point to the US market, via its established supply chain network, plus handle the logistics for moving into the world’s largest consumer networks.

The agreement also provides eSense with access to a team of experienced scientists who have a proven track record of developing commercially viable products.

The agreement covers all terpenes based products to be developed by the Company, both in conjunction with Blue Science and with other third parties, in the cleaning and disinfecting solutions market segment.

eSense says it’s still finalising product formulations, which are expected to take two to three months to complete, and pricing for terpenes-based products in this market segment.

It expects its first product, a terpenes-based sanitizer product, to be ready for manufacture in the next four to six months.  It is anticipated that this product will only require a basic FDA registration as a no-rinse hand decontaminating solution.


A partner with connections

Blue Science has averaged over $US2.5m in revenue in its last two financial years and says it has experienced increased demand in recent months as a result of a global shortage in sanitizer products.

The company is also among a select set of verified and trusted suppliers invited to participate in supplying the IBM Rapid Supplier Connect network, which is designed to provide support for supplier identity using blockchain technology.

It is also the exclusive licensee and applicant of several patents for sanitization and disinfection products for FDA and EPA regulated industries.

Blue Science aims to help buyers in the US and Canadian healthcare and government sectors including hospitals, state procurement divisions, medical device makers, pharmacies and state and local governments, to find supplies and services in an unconventional marketplace with greater efficiency.

Suppliers and buyers currently joining the network include hospitals and other organizations such as Northwell Health, New York’s largest healthcare provider, and The Worldwide Supply Chain Federation, which is onboarding more than 200 American suppliers from its 3,000 global community members.

Blue Science was formed in 2013 by Slade Smith, a Registered Professional Industrial Hygienist, AIEH, and Institute of Inspection, Cleaning and Restoration Certification Master Restorer accredited scientist with two decades of research and practical experience that is using only natural ingredients to deliver non-toxic cleaning and disinfecting solutions that have applications across a variety of industries.

This story was developed in collaboration with eSense-Lab, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.