Brighter is notified that its distributors in Nigeria and Ghana wish to renegotiate the distribution agreements - estimated revenues will either be substantially reduced or not materialise.
Brighter AB (Publ), the “Company” or “Brighter”), today announced that it has received notice from the company’s distribution partners Wssonlines Nigeria Ltd in Nigeria and Fretac Plus Ventures in Ghana (“the Distributors”) that they wish to renegotiate the distribution contracts in Nigeria and Ghana covering Actiste® and Actiste® Mini (“Actiste® Service”), which was originally announced on 30 December 2020. It is now anticipated by the Company that the estimated revenues from such distribution agreements (stated below) will either not materialise or will be substantially reduced.
Product approval processes in Nigeria and Ghana remain ongoing hence the initial orders have not yet been placed.
The Distributors are interested in continuing to work with Brighter to introduce the Actiste® Service to their influential networks in the relevant markets. Accordingly, Brighter is positive towards the prospect of a continuing commercial relationship - the terms of which will need to be discussed.
Brighter has agreed with the Distributors that the rights of exclusivity in Nigeria and Ghana cease to apply. Accordingly, Brighter is now free to enter into new contracts with other potential distribution partners. Brighter maintains ongoing discussions with other prospective distributors active in the region who have expressed a continued interest in working with the Company.
The company previously announced on 30 December 2020, followed by a clarification on 5 January 2021, 5-year distribution agreements regarding Actiste and Actiste Mini in Nigeria and Ghana, including initial orders worth EUR 2.3 Million in Nigeria and EUR 1.2 Million in Ghana.
Subject to market approvals, the Distributors agreed to order at least 3,000 (Nigeria) and 1,500 (Ghana) subscriptions corresponding to an initial advance payment of at least EUR 576,000 for Nigeria and EUR 306,000 for Ghana, 50% to be paid on order placement and the remaining 50% to be paid on delivery. The remainder of the subscription payments would be made in three (3) corresponding advances in six (6) months intervals. Additionally, minimum deliveries were agreed to for the first and subsequent years.
The partnerships were negotiated and signed by the former Brighter management at the end of 2020. Since then, Brighter’s customer engagement team held regular meetings with the Distributors’ representatives to follow up on the project, including registration activities. This is standard procedure for the Company in working with its distribution partners.
The Distributors informed Brighter today that they wish to renegotiate the distribution contracts in Nigeria and Ghana covering the Actiste® Service. They would like to work with Brighter in a different capacity than as an exclusive distributor. Accordingly, they do not intend to fulfil the purchase commitments previously announced. In consequence, among other things, the exclusivity arrangement in each jurisdiction will cease to apply.
During Brighter’s engagement in Nigeria and Ghana, the project team has gained valuable market insight and knowledge that is being leveraged into potential opportunities for Brighter’s products.
Brighter is in full control of and continues to drive the product registration process and import license application to receive the necessary product approvals to sell Actiste®, Actiste Mini® and the Actiste service in Nigeria and Ghana.
The company is working to reach a satisfactory outcome where the Distributors continue to work with Brighter in a different capacity.
As the rights of exclusivity in Nigeria and Ghana have ceased to apply, Brighter is now free to enter into new contracts with other potential distribution partners. The Company is continuously in discussions with distributors in the African market who have shown an interest in the Actiste Service, also for Nigeria and Ghana.
“Although this is naturally not what we had hoped, we remain positive about the prospect of continuing collaboration with our partners in Nigeria and Ghana. I hope we will be able to take advantage of the work that they have done so far with a new renegotiated agreement. Also, as we are now free to negotiate with other potential distributors in the region, we have other options. We have already identified potential distributors with extensive networks in the Medtech sector that could be fruitful for Brighter, and we are preparing to enter such discussions. According to the IDF Diabetes Atlas 9th Edition Africa is listed as the region with the highest proportion of undiagnosed diabetes, with 60% of adults currently living with diabetes unaware of their condition. Brighter will continue moving ahead with clear focus on entering these markets with its Actiste solution” says Christer Trägårdh, Chairman of the Board at Brighter.
For further information, please contact:
This information is information that Brighter AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 17:15 CET on September 7, 2021
About Brighter AB (publ)
Brighter is a health-tech company from Sweden with a vision of a world where managing chronic diseases is no longer a struggle. We believe a data-centric approach is key to provide smarter care for chronic conditions. Our daily-care solutions are designed with a vision to facilitate the flow of real-life treatment data between chronic-disease patients, their loved ones and their care providers – aiming to improve quality of life, easing the burden on healthcare systems, and opening new opportunities for data-driven research. Brighter's quality management system is ISO-13485 certified.In 2019 the company won the Swecare Rising Stars Award. The Company's shares are listed on Nasdaq First North Growth Market/BRIG.
For more information, please visit our website via the following link: https://brighter.se/