Conclusion of framework agreement on. manufacture and sale of MBF Medical NitrAG SoftTouch gloves

MBF Group S.A. today formally entered into a Framework Agreement for the manufacture and sale of gloves under the MBF Medical NitrAG SoftTouch brand. The agreement was signed on an exclusive basis with AGL Grup Petrol Kozmetik Medikal, based in Istanbul, Turkey. The conclusion of the Agreement is the result of weeks of talks and negotiations, which have now been formalized and included in the aforementioned agreement.

Without a doubt, the conclusion of the Agreement is a key element in the development of MBF Group SA, also in terms of updating the development strategy. The signing of the agreement could become a milestone in our development, as it brings us into the network of European manufacturers and distributors of protective and medical products that will be sold under our private label. We have no doubt that the sanitation regime will remain in the minds of countries around the world for a long time. Using our 2020 experience, we want to enter a rung higher in the production and distribution of protective and medical products.

According to the stock exchange release – the subject of the Agreement is to define the principles of cooperation between MBF Group SA and AGL Grup Petrol in the production and sale of medical assortment under the private label MBF Medical NitrAG SoftTouch, including protective gloves with antiviral protection, CE conformity certificates, complying with European standards EN 455, EN 374 and EN 420 and meeting the EU medical product directive 93/42/EEC or 94/42/EEC. Pursuant to the AGL Agreement, Grup Petrol undertook to make cyclical deliveries of goods under the MBF Medical NitrAG SoftTouch brand in accordance with the specifications of individual orders.

What is particularly noteworthy is that while negotiations with AGL Grup Petrol were still underway, notification of the products that are the subject of the Agreement was made to the Office for Registration of Medicinal Products, Medical Devices and Biocidal Products, which allows their immediate marketing in Poland. Products under the MBF Medical NitrAG SoftTouch brand have their own packaging designs in accordance with the registered logos of the Issuer and AGL Grup Petrol (including registered trademarks). The protective gloves have all the certificates required by European law to meet the standard including the highest level of protection against bacteria, fungi and viruses (EN 374-5 Virus, tested according to ISO 16604:2004 method B).

MBF Medical NitrAG SoftTouch protective gloves, like the rest of our contractor’s products, are certified for the most important and strictest standards of EU law, among others:

– while their production is carried out in accordance with the highest standards and norms confirmed by certification:

  • ISO 10002:2018
  • ISO 13485:2016
  • TS ISO 9001:2015
  • TS ISO 45001:2018
  • TS ISO 22000:2018
  • TS ISO 14001:2015

What is noteworthy – despite meeting the strictest quality requirements, we managed to negotiate and establish very attractive commercial terms that will enable us to offer the product at a price of approx. 3.50-4.00 Euro / box (depending on the size of the wholesale order) at current market prices for similar products of 6.00-8.50 Euro. The most important thing in doing so is to obtain exclusivity and sell private label products. The Company’s management and our subcontractors will proceed without undue delay to launch products on the Polish market and in neighboring countries. The Issuer will inform about any key contracts, deliveries or orders by relevant current reports. We should also keep you updated on relevant events through our social media channels and website.

Notwithstanding the above Agreement, we have signed a Non-Competitive and Non-Disclosable Cooperation Agreement (NCNDA) under which the Parties have agreed to cooperate on an exclusive and confidential basis as to the information obtained and business contacts. We very much hope that the start of production and sales of MBF Medical NitrAG SoftTouch gloves is the first stage of a long-term cooperation with a reputable Turkish contractor. Going forward, we would like to gradually expand the offered assortment with more protective and medical products – all under our MBF Medical brand, of course.