Dietary supplement maker Humet announced on Thursday that the company's board had approved a $6 million contract between majority-owned Canadian peer Enerex Botanicals and US nutritional-supplement company Herbal Integrity stipulating the latter company's exclusive right to distribute Enerex products in the United States for a period of five years.
Under the terms of the contract, Herbal Integrity has undertaken to sell at least $6 million in Enerex products in the United States over the next five years.
The contract stipulates that Herbal Integrity and Enerex can prolong the agreement for a further five years if the US company meets the sales target contained in the initial contract.
The contract will be extended by another five years if the revenue targets are met, and Herbal Integrity would be obliged to sell $13 million in Enerex products in the United States during the second five-year period. (MTI – Econews)