EZZ secures four-year global distribution deal with $10 million in committed purchases
EZZ Life Science Holdings has appointed Aumake Limited (ASX: AUK) as exclusive global distributor for a range of co-developed EZZ-branded products, establishing the EZZ Aumake Distribution Agreement with $10 million in minimum purchase commitments over four years. The agreement, commencing February 2026, requires Aumake to meet $2.5 million in annual minimum purchases whilst executing sales and distribution across all channels under EZZ’s brand and operational standards.
Under the partnership structure, Aumake assumes responsibility for global sales execution whilst EZZ (ASX: EZZ) retains full intellectual property ownership and brand control. This capital-light expansion strategy enables the life science company to access international distribution infrastructure without building its own sales network, a particularly efficient approach for emerging consumer health businesses seeking market penetration across Australia, New Zealand, China and worldwide markets.
The agreement includes automatic renewal provisions subject to performance thresholds. Failure to meet either the aggregate $10 million commitment or the $2.5 million annual minimum results in automatic termination of exclusive distribution rights, creating accountability mechanisms that protect EZZ’s commercial interests whilst providing Aumake with market exclusivity as an incentive for aggressive distribution.
Key terms of the Aumake distribution agreement
The commercial structure balances exclusivity rights with enforceable performance benchmarks, enabling EZZ to monitor partnership effectiveness through contracted revenue minimums.
| Term | Territory | Exclusivity | Purchase Commitment |
|---|---|---|---|
| Four years (Feb 2026 onwards) with automatic renewal | Global | All sales channels for covered products | $10M aggregate / $2.5M annually |
| IP & Brand Control: EZZ retains full ownership of intellectual property and brand guidelines | |||
| Termination Protection: Failure to meet annual or aggregate minimums triggers automatic termination of exclusive rights | |||
The structure protects EZZ’s brand equity through maintained IP ownership whilst creating enforceable revenue benchmarks. Investors can monitor whether annual minimums are being met in quarterly updates as a leading indicator of partnership success, with the automatic termination clause providing downside protection if Aumake fails to execute distribution effectively.
CEO commentary on the strategic rationale
Chief Executive Officer Mark Qin positioned the appointment as an infrastructure-leveraging strategy that enables international scaling without significant capital deployment.
Mark Qin, Chief Executive Officer
“The appointment of Aumake as an exclusive global distributor represents an important step in expanding EZZ’s international distribution capability. Aumake’s established infrastructure and platform experience provide an opportunity to scale selected EZZ products across global channels, while maintaining our focus on brand integrity and product quality.”
Aumake’s positioning as a specialist in delivering Australian and New Zealand brands to Asian markets aligns with EZZ’s geographic expansion priorities. The partnership enables the company to access established sales channels and logistics networks that would require substantial time and capital investment to replicate independently.
What is an exclusive distribution agreement?
An exclusive distribution agreement grants a single distributor the sole right to sell a manufacturer’s products within a defined territory or market, preventing the brand owner from appointing competing distributors or selling directly in that space. Companies use this model to incentivise aggressive distribution efforts by eliminating channel conflict, though it requires careful structuring to protect against underperformance.
The typical structure involves three key trade-offs:
- Exclusivity for volume commitment – The distributor gains protected territory in exchange for minimum purchase obligations, creating mutual accountability.
- Margin sharing for execution risk transfer – The brand owner accepts lower margins but eliminates the capital cost and operational complexity of building distribution infrastructure.
- Brand control for market access – IP and quality standards remain with the brand owner whilst the distributor handles local market execution, regulatory compliance and customer relationships.
For smaller ASX-listed companies in consumer health sectors, distribution partnerships can accelerate revenue growth whilst preserving cash for research and development activities. The contracted minimums in the EZZ Aumake Distribution Agreement provide downside protection that pure licensing arrangements typically lack, offering shareholders greater revenue visibility than purely performance-based commission structures.
Why this matters for EZZ shareholders
This agreement addresses a fundamental challenge for emerging consumer health companies: securing international distribution reach without diluting equity or overextending the balance sheet. The partnership delivers three distinct shareholder benefits:
- Revenue visibility – $2.5 million annual minimums provide a baseline for forecasting, reducing uncertainty around commercialisation timelines and enabling more accurate valuation modelling.
- Capital efficiency – EZZ gains access to established distribution infrastructure without deploying capital for sales teams, logistics networks or local market expertise, preserving resources for product development.
- Brand protection – Full IP ownership and operational oversight prevent reputational damage from substandard execution whilst the termination clause ensures performance accountability.
Aumake’s core capability in brand acceleration and sales infrastructure for Asia-Pacific markets directly supports EZZ’s geographic expansion strategy. The company’s stated focus markets of Australia, New Zealand, China and worldwide align with Aumake’s distribution strengths, particularly in delivering premium consumer health products to Asian consumers seeking Australian and New Zealand brands.
The agreement structure mitigates execution risk through performance-based exclusivity. If Aumake fails to meet the $2.5 million annual threshold, EZZ automatically regains the right to appoint alternative distributors or pursue direct sales, preventing the partnership from becoming a strategic liability if market conditions or Aumake’s execution capabilities change.
What comes next
Aumake will commence distribution activities for covered EZZ-branded products under the company’s product specifications, brand guidelines and operational standards. The initial four-year term establishes a medium-term revenue foundation, with automatic renewal periods creating continuity if performance targets are consistently met.
The monitoring framework centres on annual performance against $2.5 million minimum purchases, with both annual and aggregate thresholds determining continuation of exclusive rights. This dual-threshold structure protects EZZ from scenarios where Aumake front-loads purchases early in the term but underperforms in later years, or meets aggregate commitments whilst missing annual targets that could indicate weakening market traction.
Shareholders should watch for updates on distribution milestones and any commentary on sell-through performance in future quarterly reports. Early indicators of partnership success will include Aumake’s ability to establish retail and e-commerce presence across target markets, initial sales velocity data, and management commentary on repeat purchase rates that signal genuine market demand rather than inventory-building by the distributor.
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