Stock of gummy candy maker and nutritional supplements Top gum Jumps on the stock market today by about 11%. The company reported this morning (Thursday) that it has signed a set of strategic agreements for a period of one to 3 years, which are automatically renewed, with a huge international corporation, which the company says “manufactures and markets food and nutritional supplements under thousands of brands, in almost every country.”
according to the agreement, Top gum It will produce gum candies for the corporation based on the formulations it has developed, for initial sales in the US, Europe and other countries around the world. Top Gam also notes, “The customer has undertaken that the company will receive an exclusivity for a period of three years for the sale of products to be developed for it intended for sale in European countries and other regions of the world.”
The company further notes that “the set of agreements was signed with the customer’s headquarters in the United States, which is responsible for distributing the customer’s products in this territory, and with the customer’s global headquarters in Europe, which is responsible for distributing customer products in Europe and other countries.” So far, the company’s sales to the corporation, in respect of orders transferred to the company in recent months, even before the agreements were signed, amounted to about NIS 10 million. “
Pursuant to the agreement, the proprietary rights in the formulas provided by the Company will remain in its possession, while all proprietary rights in the Products will remain in the possession of the Customer.
This agreement joins other strategic agreements signed by Top Gam in recent months for the supply of nutritional supplements in the form of gummy candies. The company also adds that it is “in advanced processes with other leading international corporations in order to reach agreements for the development and supply of nutritional supplements in the form of gum candies, which the company will develop.”
According to Amichai Bar-Nir, CEO of the company, “This is a strategic set that includes 4 very significant agreements that constitute an expression of trust in the company in general, and in the company’s unique products and technologies that it has developed and continues to develop in particular.” These agreements represent a significant leap forward for the company, in terms of volumes, number of markets and long-term commitment. “There is no doubt that these agreements, and other similar agreements in nature, with the world’s leading companies in advanced processes, constitute a significant infrastructure for increasing the company’s production and sales volumes at its current plant and for its new plant, which is expected to begin production in the second half of 2023.”
Top Gam joined the stock market in August last year, after being required to lower prices significantly to complete its initial capital raising. Top Gam eventually raised about NIS 100 million, according to a company value of about NIS 360 million “before the money” – almost half of its value that the company aspired to in the beginning.
Those who bought shares in the issue enjoyed a high return, since since it began trading on the stock exchange, the company’s share has risen by 176% (including the jump today) and its value on the stock exchange has reached NIS 1.3 billion.
Top Gam, controlled by the founder and president Chai Hayun, and his partner Roi Lusternik, began operating in 2004 and develops, manufactures, sells and markets gummy candies at a factory in Sderot, in addition to importing and marketing other sweets, including chocolates, marshmallows, lollipops and more. ‘T (Tenta). Since 2016, it has also started operating in the field of nutritional supplements, and as part of this, it “prepares unique formulas, manufactures and markets nutritional supplements in the form of gum candy” – an area of activity that supports its growth, which has enjoyed an increase in demand.