HWL Ebsworth acts for Nuchev Ltd (ASX:NUC) on a rights issue, strategic placement and distribution agreement with H&S Group

18 September 2023

HWL Ebsworth has advised Nuchev Limited on a distribution agreement with a strategic investor and distributor known as H&S Group. H&S Group will be the new exclusive distributor for Nuchev’s Oli6® goat milk products in all channels in the Peoples Republic of China (including Hong Kong & Macau) and Vietnam with limited exceptions.

The new distribution arrangements took effect in July 2023. H&S Group is one of Australia’s largest local and export wholesalers for infant formula, vitamins, supplements, skincare, and personal care, with over 14 years’ success selling into Asian markets.

Nuchev has issued options to H&S Group to subscribe for ordinary Shares in three tranches (one per year), resulting in a total potential ownership by H&S of up to 34.9% of Nuchev.

These options are linked to yearly distribution performance hurdles.

At the same time, Nuchev completed a placement and rights issue of 1 fully paid ordinary share for every 2.59 Shares held by eligible shareholders. H&S Group invested in placement shares of 15% (after closing the rights issue).

The HWL Ebsworth team was Brendan Earle (Lead partner), Thomas Kim and Kenneth Lee (ASX and capital raising) and Connie Lambropoulos (Distribution Agreement).

Brendan Earle said:

“We were delighted to support Nuchev with this strategic transaction. H&S Group’s experience and networks will help Nuchev accelerate growth of its products in China cross border e-commerce channels and into new markets within South-East Asia. The capital raising and placement provides funds for Nuchev to execute its growth strategy to scale, widen its offering through innovation and enhance market diversification.”

Note to Editors:

HWL Ebsworth is the largest legal partnership in Australia according to the most recent partnership surveys published by the Australian Financial Review.

The firm comprises 1,710, staff including 277 Partners, 1,053 other legal staff and 380 support staff across offices in nine locations – Adelaide, Brisbane, Canberra, Darwin, Melbourne, Hobart, Norwest (North West Sydney), Perth and Sydney.

HWL Ebsworth is an independent, nationally integrated, full service commercial law firm, providing tailored and commercially oriented legal services.

HWL Ebsworth operates a different business model to the other leading national law practices, and this allows us to offer unrivalled value for money without compromising quality and service. Our low ratio of solicitors to partners ensures that our clients receive optimal access to partner resources for all matters.

For further information, please contact:

Russell Mailler, Chief Strategy Officer (03) 8644 3569 or rmailler@hwle.com.au

Angelique Kear, National Marketing Manager (02) 9334 8541 or akear@hwle.com.au

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