Rapid Nutrition PLC / Key word(s): Market Report/Expansion
Rapid Nutrition PLC: Announcement to dual list on OTC Markets
06.03.2019 / 07:15
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Rapid Nutrition PLC today announces its intention to apply for the dual
admission of its existing issued shares of the Company ("the Shares") to the
OTCQB listing segment of the OTC Market and to trading on the OTCQB of the
OTC Markets (together, "Admission").
The Company's ordinary shares are currently listed on Six, the Swiss
Exchange.
Rapid is a natural healthcare company focused on the research and
development ("R&D"), manufacturing and distribution of weight-loss and diet
management products, sports nutrition products, vitamins and dietary
supplements and a range of life science products
Key Strengths
Well established, award-winning nutraceutical brands which contain proven
and effective dose to target the main issues relating to weight management
and obesity
* Leisa's Secret, a product range comprising a system of premium meal
replacement shakes, high potency energy boosting tablets, weight loss
tablets and an appetite suppressant powder.
* System LS includes a variety of high-protein shakes, organic
multivitamins, organic superfoods, super grain granola cereals and
high-fibre bars. The brand is supported by SystemLS DICED, one of
leading and fastest growing on demand fitness and nutrition programs in
the Asia Pacific region and has customers in 54 countries.
Fast growing international distribution network
* International distribution channels in Europe, Middle East, Asia,
Australasia, Africa and North America.
* Product range is sold online and in healthcare and retail chains in
Australia, United States, and China.
A highly experienced and entrepreneurial management team and Board
* Founded in 2001 by Simon St Ledger, the Chief Executive Officer of the
Company, the management team and Board have extensive expertise in
natural healthcare, financial, M&A and business management.
Clear strategy to grow organically, supplemented by selective acquisitions
The Group's long-term objective is to build a vertically integrated company
with a unique position in the life sciences and nutraceutical space. The
Directors believe that this strategy enables the Group to impose superior
standards of quality control for its products, to strengthen its value
chain, and to scale up to optimum business efficacy.
Key pillars of Rapid's growth strategy are:
* Expand distribution into neighbouring countries where the Company is not
already present. UK, Europe, Australia, US and China are focus markets
for 2019.
* Product innovation and extension-to leverage successful flagship brands
Leisa's Secret and System LS. Rapid has recently developed a new organic
certified vegan range of products. In order to capture new markets,
other new products in development to leverage the groups current
distribution pipelines.
* Synergistic acquisitions - the Company will explore acquisitions of
assets that produce sound cash flow and are complementary to the
Company's operations.
Addressing obesity and industry statistics
The World Health Organisation has provided the following information
regarding health issues relating to obesity which underpin the Group's
business [1]:
* Worldwide obesity has nearly doubled since 1980.
* In 2014, more than 1.9 billion adults, 18 years and older, were
overweight. Of these over 600 million were obese.
* 39% of adults aged 18 and over were overweight in 2014, and 13% were
obese.
* Most of the world's population lives in countries where overweight and
obesity kills more people than underweight.
* 41 million children under the age of five were overweight in 2014.
* Obesity is preventable
According to data published by Euromonitor International in its report on
"New Development Trends in Consumer Health" dated January 2016, there is a
USD 210.8 billion consumer health market worldwide consisting of amongst
others Vitamins and Dietary Supplements (USD 88.4 billion), Weight
Management (USD 13.7 billion) and Sports Nutrition (USD 10.6 billion).
[1] Fact sheet updated June 2016, see WHO website at
http://www.who.int/mediacentre/factsheets/fs311/en
Reasons for dual listing
The intention to dual list is to give the Group improved profile and
visibility internationally, while also providing increasing access to
capital as and when further finance is required for further expansion; and
provide opportunities for the board to use the Ordinary Shares as
acquisition capital.
Mr. Simon St Ledger, Executive Director and CEO of Rapid Nutrition, said:
"We are delighted to be announcing our intention to list on the OTC Markets
which the outcome will be subject to obtaining the relevant approvals. Rapid
is a dynamic, fast -moving business with well established award-winning
nutraceuticals which have been developed to help address obesity which is
growing at an alarming rate in parts of the world and can lead to other
associated life threatening diseases.
"Our competitive edge supported by our exciting product-led, multi-pronged
expansion strategy means we are strongly positioned to take advantage of the
significant opportunities internationally, particularly in the UK, US,
Australia and China across retail, online and wholesale channels. In
addition to key retail placements, we are presently finalizing the launch of
GNC into the Australia market as well as the launch of its flagship brand
SystemLS through GNC Stores in the US. Detailed planning is being finalised
with retailer opening orders expected this quarter. We are excited about our
growth prospects and confident of the future."
Further enquires
For more information, please visit http://rnplc.com
or contact Investor Relations: info@rnplc.com
Notes to Editors
Overview
Rapid Nutrition is a natural healthcare company focused on the research and
development ("R&D"), manufacturing and distribution of weight-loss and diet
management products, sports nutrition products, vitamins and dietary
supplements and a range of life science products. The term 'life science
products' refers to the Company's nutritional supplements which, in turn, is
an umbrella term used to describe "any product derived from food sources
that provides extra health benefits in addition to the basic nutritional
value found in foods".
The Group's business commenced with the launch in Australia of its weight
loss supplement range, which is now exported internationally. The business
has grown to offer consumers a range of health and wellbeing solutions to
meet existing and emerging societal health concerns, as well as a providing
number of wider services to the life sciences industry.
The R&D of new products is conducted by a team of dieticians, naturopaths,
and pharmaceutical specialists who are engaged by the Group.
In 2015, the Company began a transition from a licensing model to a
distribution model which the Directors believe will enable to grow the
business at a faster rate whilst retaining control of its brands. It is also
a necessary step for the Company in achieving its long-term objective of
building a vertically integrated company.
Brands/Products
The Group's products extensively certified (i.e. Organic, Gluten Free, Vegan
Free, Non-GMO Verified, Eco Certified, EU/Non EU agriculture). The Group has
established two brands which are Leisa's Secret, first introduced in
Australia in 2001, and SystemLS, first introducted in Austraia in 2015.
The Group holds product registrations and trademarks for its brands Leisa's
Secret and System LS in Australia. Furthermore, the Systems LS trademark is
also held in the USA, China and additionally registered through the Madrid
Protocol which is a treaty that provides international registration of a
trade mark in all the member states, currently covering 114 countries
worldwide. It is administered by the International Bureau of the World
Intellectual Property Organization ("WIPO") in Geneva.
Manufacturing
Rapid contracts its manufacturing using several GMP approved manufacturing
facilities. GMP stands for Good Manufacturing Practice Regulations which are
guidelines set by regulatory agencies in the relevant country that control
authorization and licensing for the production and sale of food, beverages
and active pharmaceutical products. GMP shall ensure that products are of
high quality and do not pose any risk to the consumer.
The manufacturing facilities each have specific accreditation in their
region to produce the Group's products. Currently the Group uses five
contract manufacturers. Three are located in the United States in
California, Florida and Texas and two in Australia (in Queensland and New
South Wales).
Until recently all manufacturing of Rapid Nutrition products was undertaken
in Australia, however due to rising costs of production, a large portion of
that manufacturing (approximately 70%) has now been relocated to the United
States. The additional manufacturing capacity available through that
arrangement will also allow for greater levels of production to meet the
expected growth in global demand for the Group's products.
The Group outsources manufacturing in an effort to reduce costs of
production and ensure ease of compliance with applicable relevant local
regions' regulatory requirements.
Distribution
The sale of the Group's products is effected through a distributorship model
pursuant to which the Group enters into marketing and distribution licence
agreements with distributors around the world. Distribution partners include
GNC, Amazon, Complete Health Food product, Aulife International and Schering
Life Sciences in Sri Lanka.
Disclaimer: This communication expressly or implicitly contains certain
forward-looking statements concerning Rapid Nutrition PLC and its business.
Such statements involve certain known and unknown risks, uncertainties and
other factors, which could cause the actual results, financial condition,
performance or achievements of the Rapid Nutrition group to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Rapid Nutrition PLC is providing
this communication as of this date and does not undertake to update any
forward-looking statements contained herein as a result of new information,
future events or otherwise. This media information does not constitute an
offer to sell, or a solicitation of an offer to buy, any securities. This
information does not constitute an offering prospectus within the meaning of
article 652a or article 1156 of the Swiss Code of Obligations or a listing
prospectus within the meaning of the listing rules of the SIX Swiss
Exchange. This media information is not being issued in countries where the
public dissemination of the information contained herein may be restricted
or prohibited by law.
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[1] Fact sheet updated June 2016, see WHO website at
http://www.who.int/mediacentre/factsheets/fs311/en
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