Bon Natural Life (BON) secures $18M, 24‑month China product deal
Rhea-AI Filing Summary
Bon Natural Life Limited reports that its subsidiary Xi’an App-Chem Bio (Tech) Co., Ltd. has signed a Sales Cooperation Agreement with Beijing Huahai Keyuan Technology Co., Ltd. for its second-generation Apple Series natural weight management and metabolic health products in China. The 24‑month agreement grants Huahai Keyuan a non-exclusive right to market, distribute and sell these products and includes a guaranteed aggregate sales amount of at least
App-Chem will handle research and development, production and quality control to meet national standards, and must be paid in full before shipping products to locations designated by Huahai Keyuan. If products fail to meet agreed quality standards, App-Chem bears testing, return and exchange costs. Either party may terminate after an uncured breach or by mutual consent, and unjustified termination or failure to perform obligations triggers liquidated damages equal to 15% of the total agreement amount.
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Insights
Bon Natural Life secures a 24‑month China distribution deal with a minimum
The agreement positions subsidiary App-Chem to expand its second-generation Apple Series weight management and metabolic health products in the Chinese market through distributor Huahai Keyuan. The contract runs for 24 months and includes a guaranteed aggregate sales level of at least
Operationally, App-Chem retains responsibility for research and development, production and quality control, and must ensure products meet applicable national standards. It also assumes costs if products fail agreed quality standards, including testing and handling returns and exchanges, while receiving full payment before dispatch, which supports cash collection discipline.
The contract includes termination rights following an uncured breach and allows mutual termination at any time, with liquidated damages of 15% of the total agreement amount for unjustified termination or failure to fulfill obligations. Future disclosures in company filings may clarify how actual sales under this agreement progress over the 24‑month term.
FAQ
What agreement did BON Natural Life Limited (BON) announce in this 6-K?
Bon Natural Life Limited disclosed that its subsidiary Xi’an App-Chem Bio (Tech) Co., Ltd. entered into a Sales Cooperation Agreement with Beijing Huahai Keyuan Technology Co., Ltd. for the distribution and sale of second-generation Apple Series weight management and metabolic health products in China.
What is the term and minimum sales commitment of BON’s new cooperation agreement?
The Sales Cooperation Agreement has a 24‑month term, and Beijing Huahai Keyuan Technology Co., Ltd. has guaranteed aggregate sales of no less than
What responsibilities does App-Chem have under the BON Sales Cooperation Agreement?
App-Chem is responsible for research and development, production and quality control of the Apple Series products so they comply with applicable national standards, and it must cover testing, return and exchange costs if products do not meet agreed quality standards.
How and when is BON’s subsidiary paid for products under the agreement?
Products are transported to locations designated by Beijing Huahai Keyuan, and App-Chem must receive full payment from Huahai Keyuan for any products before they are dispatched.
How can the Sales Cooperation Agreement be terminated and what are the penalties?
Either party may terminate the agreement if the other party breaches it and fails to cure within 30 working days after written notice, or by mutual written consent. A party that terminates without justifiable reasons or fails to fulfill its obligations must compensate the other with liquidated damages equal to 15% of the total agreement amount.
Where are disputes under BON’s Sales Cooperation Agreement resolved?
Any lawsuits arising from the Sales Cooperation Agreement must be filed in a court located in the People’s Republic of China.