Zoono Group Limited announced that it has entered into an exclusive distribution agreement with China Animal Husbandry Group (CAHG). CAHG is a Chinese, State-Owned Enterprise specialising in all things regarding animal health in China. The key terms of the Agreement are: Initial five-year term; Renewal for one-year, and then subsequent years provided both parties agree.

CAHG has exclusive rights to use Zoono trademarks within the animal market in China, however the trademarks remain under Zoono ownership along with all IP. The primary focus will be on dairy, poultry and pigs; The performance and interpretation of the Agreement shall be governed by the laws of Singapore. Termination Provisions: If either Party seriously violates the Agreement or fails to perform its obligations as required, and the Defaulting Party fails to correct its breach of contract within thirty days after giving a written notice to the Defaulting Party.

There is no obligation on CAHG to meet minimum sales requirements under the Agreement however Zoono expects that, once approvals have been obtained, material sales will be generated under this Agreement. Under the Agreement, Zoono and CAHG will work in close collaboration to aggressively expand the use of Zoono in the dairy, poultry and pig markets. CAHG are currently arranging for regulatory approvals, estimated to take 3 to 6 months, with the expected rollout commencing on receipt of these approvals.

The approval timeframe for Zoono products for use in the veterinary sector in China has been dramatically reduced by partnering with CAHG as Chinese veterinary approvals usually take up to 2 years. Negotiations with CAHG commenced in first quarter last year. CAHG tested Zoono-Z71 in local laboratories against common pathogens found in this industry and, based on the results, has entered into the Agreement with Zoono.

CAHG is heavily invested in New Zealand companies having invested several hundred million dollars in New Zealand companies over the years. Its particular focus has been in dairy, milk production and infant formula production.