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Guifuren to provide logistics & inventory support to NextMart

07 Aug '07

3 min read

NextMart Inc a Chinese direct sales company, announced that it has entered into two separate agreements to enhance its focus on the women's apparel vertical.

The agreements together give NextMart ownership of the Peeress women's clothing brand; usage rights to Guifuren 2.0 a higher-end line of the mature urban professional women's clothing brand Guifuren; and a strategic partnership for retail distribution in Mainland China.

According to the first agreement, NextMart will acquire from Mr. Jiancai Zhou, Peeress, a women's clothing brand with 3,000 clothing designs accumulated over a 12-year period.

The consideration for the acquisition is $2.17 million, of which $1 million will be paid in cash and $1.17 million will be paid with 5 million shares of Sun 3C Media Plc (AIM:SCCC) held by NextMart.

NextMart will satisfy $500,000 of the cash consideration, and Sun Media Investment Holdings ("SMIH"), NextMart's parent company, will satisfy the other $500,000 on NextMart's behalf.

To compensate SMIH for its financial support in the transaction, NextMart will grant SMIH perpetual, non-exclusive usage rights to the reverse-auction software the Company purchased last year.

According to the second agreement, NextMart and Shanghai Guifuren Garment Co Ltd ("Guifuren Garment") will form a strategic partnership for the sale of NextMart apparel product in Mainland China.

NextMart will gain from Guifuren Garment usage rights to the Guifuren 2.0 mature urban professional women's brand. NextMart will also obtain access to 1/3 of Guifuren Garment's nationwide sales space in nearly 60 retail stores in exchange for a commission on in-store sales of NextMart product. Guifuren Garment will provide logistics and inventory support to NextMart at no cost.

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