Merion, Inc. and Hong Kong Encaid Limited Enter into Agreement to Promote and Sell the Merion's Products in China and Asia
July 01, 2019 at 09:41 pm
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On June 27, 2019, Merion, Inc. (the “Company”) entered into a Cooperation Agreement (“Agreement”) with Hong Kong Encaid Limited (“HK Encaid”), pursuant to which the Company agreed to authorize HK Encaid to promote and sell the Company’s products in China and Asia. Pursuant to the Agreement, the Company agreed: (i) to set up a “Merion Inc. Beijing Representative Office” in Beijing, China to assist HK Encaid in selling the Company’s products in China and Asia; (ii) to authorize HK Encaid to promote and sell the Company’s products in China and Asia; (iii) to provide RMB 1 million (approximately USD 145,985) worth of products to support HK Encaid’s development of the market for the Company’s products in China and Asia; (iv) to pay RMB 1 million (approximately USD 145,985) to HK Encaid upon HK Encaid’s promotion of the Company’s products generating actual sales of RMB 10 million (approximately USD 1,459,854); (v) to consider allocating a total of 20 million warrant shares for HK Encaid based upon its performance, which warrant shares will have an exercise price of one dollar per share and will become exercisable upon HK Encaid’s promotion of the sales of the Company’s products reaching the amount of USD 5 million; (v) to pay HK Encaid USD 1 million for fixed product promotion and service fees in cash or in the form of the Company’s common stock if HK Encaid’s product sale promotion results in the Company’s actual sales reaching USD 5 million. Pursuant to the Agreement, HK Encaid agrees: (i) to provide service for Asian customers to purchase products from the Company’s website and Chinese internet shopping malls through cross border e-commerce platforms, and Chinese bonded zone channels in accordance with applicable laws; (ii) to integrate cross-border internet resources, web celebrity resources, wechat business resources, store sales agency systems and other alliance resources, as well as block-chain technology application resources, and make market sales plans and incentive mechanisms in compliance with relevant Chinese laws and regulations to rapidly expand product sales channels and client orders; (iii) to provide product information consultation, online shopping guidance and cross-border e-commerce services. The parties also agree that all customer purchase orders shall be completed directly through online shopping websites, and all sales funds shall be settled directly with the Company. HK Encaid and the Company’s Beijing representative office do not charge customers for sales of products or any other fees.
Merion, Inc. is a provider of health and nutritional supplements and personal care products. The Company focuses on nutritional and beauty products, and OEM and packaging products. The Company mainly sells its products over the Internet directly to end-user customers through its Website, www.merionus.com, and to wholesale distributors through phone and electronic communication. The Company's major customers for its nutritional and beauty products are located in the Asian market, predominantly in the People's Republic of China. The Company's major customers for its original equipment manufacturer (OEM) and packaging products are located in the United States. The Company's products include Noir Naturel, Viwooba (1-3), Lady-S, ReMage-Power, Gold King, Tai Bao, and New Power. The Company also provides OEM and packaging services for hard capsules, tablets, solid beverages (sachet packaging), teabags, powder, granules, dietary supplements, soft gel capsules, and health foods.