Provexis unveils improved terms on deal with DSM on Fruitflow deal
Specialist food developer Provexis has announced "significantly" enhanced financial terms for its long-term alliance agreement with DSM Nutritional Products for its Fruitflow food ingredient.
Food Producers & Processors
8,312.24
12:45 09/05/24
FTSE AIM All-Share
782.42
12:45 09/05/24
Provexis
0.60p
09:45 09/05/24
Under the new terms, Provexis will receive a greater share of the profit because the fixed level of overhead deduction from sales has been permanently reduced and will be back-dated from the start of 2015.
Dawson Buck, Chairman of Provexis, said: "We are delighted to announce the revised terms which have been agreed for the Alliance Agreement, which will permanently increase the profit share payable to the company. The revised commercial terms of the Alliance Agreement reflect the continued strength of the long-term relationship between Provexis and DSM."
The group also said that its results for the year ended 31 March are expected to show another strong year of progress, with revenue of £38,000, up from £5,000 a year earlier.
Strong interest for Fruitflow has seen revenues from the product soar more than 73% year-on-year.
The company's cost base and its resources continue to be very tightly managed, it said, adding that it will need to raise some further working capital. As part of this need, it has joined PrimaryBid.com, an online platform dedicated to equity crowdfunding for AIM-listed companies.
"[This] will allow us to access funding directly from investors in a way which has traditionally been very restrictive," Buck added.
"The platform provides us with the potential to access capital flexibly and quickly when the company should need to do so, and it will give private investors who have been supporting the company the ability to participate in potential future fundraisings."