PERTH/KUALA LUMPUR, 21 September 2017 – Holista CollTech Ltd (ASX: HCT, “Holista” or the “Group”) announced today that it will acquire a 47%-stake in iGalen International Inc (“iGalen”) a fast-growing network marketing company from Holista’s CEO and single-largest shareholder, Dr Rajen Manicka, for the nominal sum of US$1.
Holista has been a supplier of patented supplement products to iGalen, including the product Emulin®, which is already selling in North America since Emulin® was awarded FDA approval in the US.
Based in San Diego, iGalen has built up a network of 11,770 distributors since its launch in February this year and continues to grow by about 100 distributors daily.
The primary success for iGalen is based around their core product – exclusively sourced from Holista – Emulin®. This is an all-natural refined carbohydrate manager developed by two Nobel Prize nominees that has proven to remove excess carbohydrates, thereby improving blood sugar regulation, blood lipid profiles and sustained weight loss. On 9 August 2017, Holista announced that it has secured global exclusive distribution rights for Emulin®, extending an earlier Asia-only arrangement.
iGalen has a long-standing binding agreement to source all its network marketing products exclusively from Holista.
“The transfer of my entire personal stake in iGalen to Holista for a nominal sum underscores my commitment to enhance value for all stakeholders. The fit is synergistic and will accelerate growth for both Holista and iGalen,” said Dr Rajen.
“The next product to be launched will be a unique supplement which promotes stem cell release in the body. It can be applied on the skin and will not require injection or surgery which is the traditional mode for stem cell treatment.”he added.
“My other board member and I set up iGalen as a private venture as there are too many unknowns in an early stage network marketing company. This could represent additional less-manageable risk for shareholders, in the very early stages of development. Now that we are up and running with all the risks significantly reduced, I am pleased to offer my entire shareholding in iGalen to Holista for a token amount. This gives us a great marketing channel for our other emerging health products,” he said.
Following the equity injection, iGalen intends to launch three other products in the near future, apart from the stem cell releaser – food-grade sheep collagen (patented and produced by Holista itself) and supplements for anti-inflammatory and joint pain relief.
iGalen’s major shareholder is Singapore Exchange-listed Singapore eDevelopment Limited. Pursuant to Listing Rule 10.1, the transaction is subject to Shareholder Approval.