SCU’s shares climbed on ASX after securing contract to supply 50 tonnes Resina to Chinese customer

StemCell United Limited (ASX: SCU) revealed that it has secured a contract to supply 50 tonnes of Daemonorops Draco Blume extract (Resina) to the Chinese customer in the next 5 years. Of which, the company has delivered an initial 1 tonne of Resina to Zhejiang Forest Rainbow Medical Co Ltd under the contract. As per the terms of the Contract, the agreed price of Resina was decided at US$200 per kg (or US$200,000 per tonne) but it is subject to market price changes. It is expected that Group will generate a profit of about US$40,000 per tonne. In addition to this, SCU will be involved in the supply chain management and quality check as per China’s import regulations and safety standards. Following this, the company procured the Resina Powder from its agents and ships it to the subcontractors for extraction purpose of its active agents i.e., Dracohodin, and then process this powder to cakes form. On the development site, the first shipment has been released to the Chinese company on July 09, 2018. With the announcement, the share price climbed up 24 per cent on July 13, 2018 with the intra-day trading volume of more than 47.5 Mn before market close.


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