Gainhealth, a subsidiary of Catalist-listed Metal Component Engineering (MCE), has signed a joint venture agreement (JVA) with MNR Food to establish a business developing and distributing clinical nutrition products through direct-to-consumer platforms on Oct 20.
The joint venture entity, Gain Foods, will be 60% owned by Gainhealth, with the remaining 40% owned by MNR.
According to MCE, Gain Foods will ill initially target products relevant to kids’ nutrition, seniors and weight wellness sub-segments. Gain Foods will be the marketer and distributor of these clinical nutrition products in various countries in Asia, for both MNR and Gainhealth.
Singapore-based MNR owns a subsidiary with relevant Singapore Food Authority licences for packaging, distribution and storage facilities in Singapore. MNR has distribution rights to food products such as riceberry, germinated brown rice and 4Heroes shakes and smoothies for the young, seniors and elderly.
Gainhealth, which has an e-commerce arm selling healthcare products, offers bulk purchasing and distribution channels for healthcare products in the Asean region.
MNR has a put option on or after the first year of the incorporation of Gain Foods, to sell all its shares in Gain Foods to Gainhealth at a fair value to be certified by auditors of Gain Foods or an independent valuer certified in Singapore.
Shares in MCE closed 0.1 cents or 2.13% higher at 4.8 cents on Oct 19.
Photo: MCE
