RNDR .007 NEWS: Rounder Inc., Discusses its Marketing Agreement with DynaPep WASHINGTON --(BUSINESS WIRE)-- Rounder Inc. , (Pink OTC Market: RNDR) subsidiary DynaNutra Enterprises, Inc. ("DynaNutra") reports progress in the development of its marketing campaign for the national distribution of the DynaPep product line.
DynaPep will raise capital to increase its inventory by $500,000 and add to its current advertising budget by $1,500,000 to meet the needs for promotion as defined in certain of its sales agreements. This raising of capital will not be dilutive to Rounder Inc.
Rounder Inc.s., agreement with the supplier of DynaPep requires DynaNutra to manage the marketing of and act as the agent for the complete line of DynaPeps products including new products which are soon to be released. Under our marketing agreement, DynaNutra will receive a 15% commission on the gross value of all advertising. The present ad budget is $2,000,000 and is expected to be a constant 10% of sales thereafter. Norman Birmingham CEO of Rounder Inc. stated I am excited that we are close to selecting a well-known company for the production of the advertising.
DynaNutra will be responsible for distribution of all products sold to DynaPep customers, where quantities exceed 10 cases per order. History reflects that sales of DynaPeps products are largely 10 case orders or greater. Mr. Birmingham added with the ever growing product line of DynaPep products I expect increases in the amount of 10 case orders to grow exponentially as retailers expand their inventory to include these new products. To the further benefit of Rounder Inc. , DynaNutra will be able to account on an accumulative basis the orders received from mass merchants and retailers that may have been placed for individual stores, thus providing results that will equal or exceed the 10 case criteria. The profit margin for distribution is a fixed 10% of the gross amount of the sale. Payment for the product is due when the invoice is paid by the purchaser. DynaNutra does not have to handle or warehouse the product. All of those costs are incurred by the product supplier.
In addition Mr. Birmingham went on to say We expect gross revenue to increase dramatically during the first year with sales approaching $10 to $13 million . The company will have limited management costs to apply to the gross revenue received. New contracts for additional chains are being negotiated and expansions to the existing sales contracts are expected to be concluded before the end of the year. New products for sleep aids and other nutraceuticals are in the final stages of their development and will be marketed beginning early next year, after the successful conclusion of the test marketing campaign by the supplier.
DynaPep will raise capital to increase its inventory by $500,000 and add to its current advertising budget by $1,500,000 to meet the needs for promotion as defined in certain of its sales agreements. This raising of capital will not be dilutive to Rounder Inc.
Rounder Inc.s., agreement with the supplier of DynaPep requires DynaNutra to manage the marketing of and act as the agent for the complete line of DynaPeps products including new products which are soon to be released. Under our marketing agreement, DynaNutra will receive a 15% commission on the gross value of all advertising. The present ad budget is $2,000,000 and is expected to be a constant 10% of sales thereafter. Norman Birmingham CEO of Rounder Inc. stated I am excited that we are close to selecting a well-known company for the production of the advertising.
DynaNutra will be responsible for distribution of all products sold to DynaPep customers, where quantities exceed 10 cases per order. History reflects that sales of DynaPeps products are largely 10 case orders or greater. Mr. Birmingham added with the ever growing product line of DynaPep products I expect increases in the amount of 10 case orders to grow exponentially as retailers expand their inventory to include these new products. To the further benefit of Rounder Inc. , DynaNutra will be able to account on an accumulative basis the orders received from mass merchants and retailers that may have been placed for individual stores, thus providing results that will equal or exceed the 10 case criteria. The profit margin for distribution is a fixed 10% of the gross amount of the sale. Payment for the product is due when the invoice is paid by the purchaser. DynaNutra does not have to handle or warehouse the product. All of those costs are incurred by the product supplier.
In addition Mr. Birmingham went on to say We expect gross revenue to increase dramatically during the first year with sales approaching $10 to $13 million . The company will have limited management costs to apply to the gross revenue received. New contracts for additional chains are being negotiated and expansions to the existing sales contracts are expected to be concluded before the end of the year. New products for sleep aids and other nutraceuticals are in the final stages of their development and will be marketed beginning early next year, after the successful conclusion of the test marketing campaign by the supplier.
