InvestSMART

Merino & Co. Limited (ASX:MNC)

ALERT: Price-sensitive ASX Announcement for MNC
Current share price for MNC : $0.086 -0.004 (-4.44%)+
Announcement
Release
4 May 2026 11:11AM
Price at Release
$0.090
Full Release
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Summary
Merino & Co. Limited has secured an exclusive distribution agreement with a Shanghai-based distributor for Mainland China, establishing a minimum annual order commitment of CNY 30 million over an initial three-year term. The agreement includes multi-channel distribution and targets a 20% annual growth rate upon renewal. This strategic move transitions the company's China market presence from opportunistic exports to a defined distribution model, allowing Merino & Co. to retain control over product quality while the distributor handles in-market sales and marketing. This partnership supports capital-efficient growth by leveraging local capabilities without direct investment in retail infrastructure.
Key Points
  • Exclusive distribution rights granted for Mainland China.
  • Minimum annual order commitment of CNY 30 million (~AUD 6.5 million).
  • Initial term of three years, with renewal subject to performance.
  • Agreed minimum growth rate of 20% per annum upon renewal.
  • Multi-channel distribution across e-commerce, retail, and wholesale.
  • Distributor is Shanghai-based, responsible for sales and marketing.
  • Merino & Co. retains control over product supply and quality.
  • Structured expansion from opportunistic export to defined distribution.
  • Capital-efficient growth leveraging local market capability.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.