Reference is made to the announcement of 12 January, 2017 regarding Aqua Bio Technology’s (ABT) distribution agreement with Scandiderma AS (Scandiderma) for the distribution of the skin care series Cuvget (the Distribution Agreement).
As per the Distribution Agreement, ABT has been holding exclusive distribution rights for Cuvget in EMEA (Europe, the Middle East and Africa).
The market response to the Cuvget products in their present form, as well as the sales of the skin care series, have failed to mirror ABT’s expectations. Therefore, ABT has decided not to meet its commitments related to the minimum order set out in the Distribution Agreement and its appendices.
ABT and Scandiderma have been engaged in negotiations over a new, exclusive distribution agreement and a reformulation of the skin care series. However, the parties have not succeeded in agreeing on the terms for a further exclusive cooperation. Going forward, ABT will therefore sell Cuvget on a non-exclusive basis in the EMEA, something which is expected to be more challenging under ABT’s current business model.
The main ingredient in Cuvget is Arctic Chaga, a fungus found on birch trees in the Arctic. The substance has been known in Russian and Sami nature medicine for centuries. ABT holds a patent for the use of Chaga fungus in a certain concentration for use in cosmetic products. ABT strongly believes in the potential of Chaga fungus as an ingredient in cosmetic products. The termination of the exclusivity related to the distribution of Cuvget will not influence ABT’s patent rights.
For further informatioin, please contact Espen Kvale, acting CEO, telephone +47 9162 8092.
Aqua Bio Technology (ABT) is developing and commercializing sustainable biotechnology for use in skin care products. ABT's cosmetics ingredients are highly effective and they provide the cosmetics industry with natural alternatives to traditional ingredients. ABT is also marketing and distributing natural skin care products developed by partners towards consumers and professional users. Aqua Bio Technology is listed on the Axess market of the Oslo Stock Exchange.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.