Eevia Health Plc enters negotiations for a significant sales contract for 2025 with an option to extend until 2027
Eevia Health Plc (”Eevia” or the “Company”) has entered negotiations with a European food manufacturer to manufacture a new plant extract (the “Product”) with the potential for significant contribution to the Company’s topline and profits in 2025. The manufacturing would start earliest in December 2024 and will require 20% to 40% of Eevia's annual production capacity for 2025, with an option to extend both annual volumes and the contract period till 2027. The parties expect to finalize negotiations by the end of Q1-2024.
The customer is a listed and well-established medium-sized European branded food corporation with about half a billion euros in annual revenues. During 2023, Eevia executed five (5) successful pilot test productions for the customer at Eevia’s manufacturing plant in Finland.
The Product is an innovative extract from a plant material. The starting material for Eevia will be pre-manufactured and provided to Eevia by the customer, free of charge. The volumes indicated for 2025 may be up to 40% of Eevia’s annual production capacity on the current 24-hour, five days per week production schedule. A part of the contract volume will be “take and pay,” which will guarantee a minimum sales volume for Eevia. Depending on the Product’s success in the market, the option for further volumes may be agreed upon as well as extension until 2027.
While contracted values will remain confidential, the contract would be a significant contribution to the Company’s topline and profits in 2025. We expect to be able to give some further guidance on values when the contract is finalized and signed at the end of Q1-2024.
“This project is a welcome opportunity for Eevia to lock in significant revenues for 2025, and potentially for 2026 and 2027. This and similar opportunities we have in our pipeline provide traction towards achieving our long-term revenue target of EUR 25 million," says Stein Ulve, Eevia's CEO.
For further information, please contact:
Stein Ulve, CEO, Eevia Health Plc
Email: stein.ulve@eeviahealth.com or investor@eeviahealth.com
Telephone: +358 400 22 5967
This disclosure contains information that EEVIA HEALTH PLC is obliged to make public according to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on January 12, 2024.
INFORMATION ABOUT EEVIA HEALTH PLC
Eevia Health Plc, founded in March 2017, addresses significant health problems with bioactive compounds extracted from plant materials. The materials are primarily wild harvested from the pristine Finnish and Swedish forests near or above the Arctic Circle. The extracts are sold B2B as ingredients to dietary supplements and food brands globally. These global brands utilize the ingredients in their consumer product formulas.
Eevia Health is a manufacturer of 100% organically certified plant extracts. Although a significant product, Elderberry extract, is made from cultivated berries, most of Eevia's other raw materials, such as bilberry, lingonberry, Chaga mushroom, and pine bark, are wild-harvested sustainably.
Eevia Health operates a modern green-chemistry production facility in Finland. Manufacturing natural ingredients near the raw material harvest areas, Eevia offers a short value chain with an environmentally friendly carbon footprint, competitive pricing, and extreme transparency. Eevia listed its shares at the Spotlight Stock Market in Sweden in June 2021, with the short name (ticker) EEVIA.
To learn more, please visit www.eeviahealth.com or follow Eevia Health on LinkedIn@EeviaHealth.
