Aemetis Health Products signs distributor deal for health safety product
US-headed advanced renewable fuel and biochemicals company Aemetis Inc., has announced that its wholly-owned subsidiary, Aemetis Health Products, Inc., received a US$24 million initial purchase order after signing a supply agreement for sanitizer alcohol and nitrile gloves with a California distributor that provides health safety products to the state of California as well as other governmental entities and large hospital chains throughout the United States
In August 2020, Aemetis launched its new Aemetis Health Products subsidiary as a means of turning the disruption caused by the ongoing coronavirus (COVID-19) pandemic into an opportunity to venture into new markets. The subsidiary is focused on the production and marketing of blended liquid and gel sanitizers as bulk and packaged products.
Aemetis Health Products became what we believe to be the largest production plant for sanitizer alcohol in the Western U.S. during the second quarter of 2020. We are now executing on our plan to produce and market alcohol-based health safety products including hand sanitizer, sanitizer wipes, and aerosol sanitizers under the Aemetis and private label brand names. Our government and healthcare customers have repeatedly requested that Aemetis extend our product line to include the supply of nitrile gloves. With more than a decade of extensive business experience in Asian markets, we believe Aemetis is well-positioned to be a trusted partner of health safety product manufacturers in that region, as well as other international markets said Eric McAfee, Chairman, and CEO of Aemetis.
To support the supply agreement and enable the expansion of the Aemetis Health Products business, Aemetis has negotiated the general terms of a new credit facility with its existing lender, which will be used solely for our health safety product transactions.