Vivakor has entered into an exclusive, $5m license agreement with consumer product specialist, Regeneca International. The agreement exclusively licenses to Regeneca distribution rights to a new nutraceutical formulation developed by Vivakor and provides for the development of future formulations by Vivakor for Regeneca.
As per the terms of the agreement, Regeneca is expected to be the exclusive worldwide direct-to-consumer distributor for the current formulation as well as any future nutraceutical formulations offered to Regeneca by Vivakor.
Regeneca has committed to purchase from Vivakor a minimum of $5m in product over the next three years and Vivakor is expected to receive a 15% ownership interest in Regeneca’s outstanding common stock and will be the exclusive supplier of the licensed product to Regeneca.
The companies entered into the agreement following a successful test marketing of one of Vivakor’s formulations, which was followed by an initial Regeneca order of over $100,000 of product.
Larry Walter, president of Regeneca, said: “From our standpoint, this transaction makes a great deal of sense. The pilot program demonstrated great promise for Vivakor’s products from both a commercial and personal health perspective. Regeneca is certain to be able to develop a strong niche in the nutraceutical market with this terrific product and those to follow from this agreement.”