Jatenergy Ltd getting high on distribution deals

Distribution agreement with Cyclone E-Commerce Co., Ltd: Jatenergy Ltd (ASX: JAT) has signed the distribution agreement with Cyclone E-Commerce Co., Ltd under which Cyclone has agreed to purchase over $7.5 million in product from JAT over the next 12 months. As per the agreement, Cyclone has agreed to purchase 300,000 tins of NEURIO – Lactoferrin Milk Powder from JAT over a 12-month period at the best market price.  Cyclone has exclusive rights to sell the product on the Hipac and Momtime platforms. The term of the agreement is twelve months, that can then be extended by mutual agreement. Cyclone is required to make full payment for all orders prior to shipping by JAT. Further, there are no conditions precedent to the agreement. Additionally, NEURIO – Lactoferrin Milk Powder is an attractive product in China as the orders are reflecting that. This product is supplied by Sunnya Pty Limited. JAT has agreed to purchase 51% of Sunnya Pty Limited, after getting the shareholder approval at a general meeting of shareholders which is expected to be held in August 2018. Meanwhile, Sunnya has agreed to supply to JAT all of the Neurio product required for the Cyclone agreement over the next 12 months, regardless of whether the Sunnya acquisition proceeds or not. Lately, the group also highlighted about the distribution deal with Australian Huibao International Group Limited. On the other hand, JAT stock has fallen 64.17% in three months as on June 25, 2018.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s