Rounder Inc., Discusses its Marketing Agreement with DynaPep
October 22 2012 - 8:30AM
Business Wire
Rounder Inc., (Pink OTC Market: RNDR) subsidiary DynaNutra
Enterprises, Inc. ("DynaNutra") reports progress in the development
of its marketing campaign for the national distribution of the
DynaPep product line.
DynaPep will raise capital to increase its inventory by $500,000
and add to its current advertising budget by $1,500,000 to meet the
needs for promotion as defined in certain of its sales agreements.
This raising of capital will not be dilutive to Rounder Inc.
Rounder Inc.’s., agreement with the supplier of DynaPep requires
DynaNutra to manage the marketing of and act as the agent for the
complete line of DynaPep’s products including new products which
are soon to be released. Under our marketing agreement, DynaNutra
will receive a 15% commission on the gross value of all
advertising. The present ad budget is $2,000,000 and is expected to
be a constant 10% of sales thereafter. Norman Birmingham CEO of
Rounder Inc. stated “I am excited that we are close to selecting a
well-known company for the production of the advertising.”
DynaNutra will be responsible for distribution of all products
sold to DynaPep customers, where quantities exceed 10 cases per
order. History reflects that sales of DynaPep’s products are
largely 10 case orders or greater. Mr. Birmingham added “with the
ever growing product line of DynaPep products I expect increases in
the amount of 10 case orders to grow exponentially as retailers
expand their inventory to include these new products.” To the
further benefit of Rounder Inc., DynaNutra will be able to account
on an accumulative basis the orders received from mass merchants
and retailers that may have been placed for individual stores, thus
providing results that will equal or exceed the 10 case criteria.”
The profit margin for distribution is a fixed 10% of the gross
amount of the sale. Payment for the product is due when the invoice
is paid by the purchaser. DynaNutra does not have to handle or
warehouse the product. All of those costs are incurred by the
product supplier.
In addition Mr. Birmingham went on to say “We expect gross
revenue to increase dramatically during the first year with sales
approaching $10 to $13 million. The company will have limited
management costs to apply to the gross revenue received. New
contracts for additional chains are being negotiated and expansions
to the existing sales contracts are expected to be concluded before
the end of the year. New products for sleep aids and other
nutraceuticals are in the final stages of their development and
will be marketed beginning early next year, after the successful
conclusion of the test marketing campaign by the supplier.”
Safe Harbor
This press release contains forward-looking statements. Such
forward-looking statements are subject to a number of risks,
assumptions and uncertainties that could cause the Company's actual
results to differ materially from those projected in such
statements. Forward-looking statements speak only as of the date
made and are not guarantees of future performance. We undertake no
obligation to publicly revise any forward-looking statements.