Symphony Environmental Technologies Plc (LON:SYM), global specialists in technologies that make plastic and rubber products “smarter, safer and sustainable” has announced that it has entered into a significant collaboration with Meditechs Global Co Limited through the conclusion on 2nd August 2021 of four separate agreements on distribution, manufacturing, marketing and corporate investment. This collaboration is intended to accelerate and expand sales of d2w and d2p technologies and finished products in China and globally, through Meditech’s established network of manufacturers and commercial end-users.
Meditech is the holding company of a group of established glove manufacturers with factories in Malaysia and China, specialising in medical grade nitrile disposable gloves.
DISTRIBUTION AGREEMENT
Symphony has appointed Meditech as an authorised distributor for its d2w and d2p additive and masterbatch technologies in China. Exclusivity for all these products has initially been agreed for sale to five specific large Chinese companies, who are all existing customers or relationships of Meditech. Further exclusivity in China may be granted to Meditech, with due regard to Symphony’s existing distributors in China, should Meditech purchase for distribution a minimum level of products from Symphony.
The distribution agreement is for an initial 10-year term.
MANUFACTURING AGREEMENT
Meditech will purchase trial quantities of Symphony’s d2p and d2w additives for manufacturing prototype batches of gloves containing d2p and/or d2w and for seeking certification of the gloves for sale in the EU and the US under PPE, Medical Device and Food Contact regulations. Technical cooperation is already progressing and is expected to take up to six months. Sales agreements are anticipated much sooner in some markets.
If the trial batches are satisfactory to both Symphony and Meditech, commercial quantities of each type of glove will be agreed. In addition to paying for additives supplied by Symphony, Meditech will pay a royalty for the use of Symphony’s IP and branding.
The manufacturing agreement is for an initial 5-year term, and Meditech has stated its ambition that all gloves manufactured by it will be made with d2p anti-microbial and d2w oxo-biodegradable technology before 2024. Exclusive supply of d2w and d2p is envisaged for glove manufacture in Malaysia and China if sales of Meditech gloves incorporating d2p and/or d2w exceed an annual threshold of 100 million gloves.
MARKETING AGREEMENT
Meditech has appointed Symphony as an authorised but non-exclusive global distributor for its nitrile gloves made with Symphony’s d2p and/or d2w technologies. Exclusivity is envisaged for certain companies and/or territories, to be specified if sales exceed a significant threshold.
The marketing agreement is for an initial 3-year term.
CORPORATE AGREEMENT
For the purposes of aligning the commercial and corporate interests of Symphony and Meditech, Meditech has undertaken that it will, no later than 6 months from the date of the agreement, acquire not less than 2.5% and not more than 20% of the total issued ordinary share capital of Symphony. The shares may be purchased in the open market, or by private treaty, or at Symphony’s absolute discretion, by the issue of new ordinary shares at no less than 35p per share.
SUMMARY
Michael Laurier, CEO of Symphony Environmental Technologies, said “These agreements will provide Symphony with a much stronger presence in the Far East and will give us a secure supply of gloves made with our antimicrobial and/or biodegradable technology for our growing international trade in gloves. In addition, we welcome Meditech’s agreement to invest in Symphony so that our commercial and corporate interests are more closely aligned.”
Andrew Dai, President of Meditech, said “For many years our focus has been on products which protect human health, and we welcome the opportunity to make these products even more effective by using Symphony’s d2p antimicrobial technology. We are pleased that Symphony wishes to market them through its worldwide distribution network. We are impressed by Symphony’s other d2p products and we are confident that there will be demand for them in our markets in China, and elsewhere in Asia. At the same time we are increasingly concerned to protect the environment, and we see much potential in Symphony’s d2w technology for dealing with plastic waste which gets into the open environment. This is a huge problem in Asia. Finally, we will be making an equity investment in Symphony so as to align our commercial and corporate interests”
