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We're not selling the technology dude, the proposal is that we...

  1. 345 Posts.
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    We're not selling the technology dude, the proposal is that we all indirectly (by way of dilution) pitch in to fund a rapid & ambitious expansion, along with a clear signal to create our own brand "Wellfully" and "go it alone in certain areas".

    Along with shareholder dilution, to raise the 40-50 mil required - we can expect to see sophisticated investors brought in & the current board to heavily invest into this vision as well without having any ASX conflict of interests in the strict director purchasing timeframes

    With this purchase, we get equity via the property, we get access to cash via a 20 mil lending facility and most importantly, we are fast tracking a distribution network / supply chain network, along with existing contracts with retailers to distribute products (i.e. Woolies, Coles, IGA, Chemist Warehouse, Costco etc) which would have taken years to build from scratch!

    I don't understand the people who are saying, what are we going to do with with these sports products and vitamins and what's P&G going to do?
    You need to think bigger than that, we don't care about distributing vitamins and sports products, we care about the warehouse, distribution networks, supply chain and retail contracts.

    Once they are in place and built up, it's not hard to add an extra product (or 20) through the network. Even if we continue to import and distribute these vitamins and products from the USA, it's not our main focus but chump change and a profit making department under the overarching "Wellfully" banner. It may even be one of the 5 planned pillars (the importing and distribution of products) and it would make sense of Pavlovich to come on board as director and continue to build up this distribution network, retail contracts & selling more products. It might even be the intention to expand this distribution network outside of the USA / Australia / New Zealand channels to include Asia & Europe at some stage in the future.

    Instead of ONLY importing and distributing foreign developed products/vitamins/goods, in addition he can distribute and sell any future OBJ-developed products, thereby reducing our long-term costs because we are in control of our own network, as opposed to outsourcing every aspect of the pipeline (manufacturing, storage, distribution, marketing & selling).

    Since it does not appear that Nutrition Systems are selling from their own physical stores, but rather by retail contracts then it doesn't matter what other products they are distributing via Coles, Woolies or Costco. If it's a vitamin, a patch, KneeGuard, bubble gum or electrolyte drinks, it means nothing as they are all placed in different aisles and different stores based on the retail contract agreement. Nobody would even know that that the vitamins or KneeGuard are being distributed by the same company. All they see is a product with a brand on it (hopefully with Reduit and Wellfully brands in future!)

    As for P&G, they aren't going to do anything - it's business as usual for them and they still retain exclusivity to the beauty sector for our tech 1 and tech 2 (whenever that's officially released). They don't care if we are called OBJ or Wellfully, they are just licensing a technology from us.

    There is alot of potential here with flexibility to move around and take this in different directions. I dare say this was all thrashed out and agreed well before Peros, Schapera and Varano even joined the OBJ board. Now is the time they are choosing to announce it and I suspect this is due to some products being almost ready to distribute (we know of at least one that's ready for Q1, 2020), there's probably a few more in their final stages.

    This assumption is further backed by all the ex-FOREO employees joining Welfully as far as 4-6 months ago. They are clearly believers of the new vision and PP in general.

    If you had a manager who left your company last year, would you resign and follow him / her to a new start up that had potential?

    I know I wouldn't, these guys must really trust Peros.

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