Beyond Oil's US$8.3M Master Distribution Agreement: A Boon for U.S. Market Expansion

Beyond Oil Ltd. (CSE: BOIL) (OTCQB: BEOLF) (Frankfurt: UH9), a pioneering food-tech company dedicated to reducing health risks associated with fried food, has secured a transformative Master Distribution Agreement (US Master Distribution Agreement) with Latitude Ltd. (Latitude), a New York-based importation, distribution, and logistics company. This strategic partnership, valued at US$8.3 million in minimum purchase commitments for the fiscal year 2025, positions Beyond Oil for significant U.S. market expansion and revenue growth.

Approved on January 23, 2025, the US Master Distribution Agreement grants Latitude the right and license to market and sell Beyond Oil's innovative product across the United States. The agreement spans five years, with the option to renew for additional five-year terms, provided that both parties reach agreements on product pricing and minimum purchase requirements for years two through five. This long-term commitment aligns with Beyond Oil's global expansion plans, ensuring a steady revenue stream and market penetration in the United States.

Latitude will focus on selling Beyond Oil's product to small and medium-sized food service customers while leveraging its sub-distributor network to achieve broad market penetration. This strategy allows Beyond Oil to concentrate on securing strategic deals with larger, multinational customers, while Latitude drives growth and revenue in other market segments. The companies will work closely together to ensure synchronized efforts, participating jointly in trade shows, coordinating market strategies, and aligning operations to maximize efficiency and impact. This collaboration enables Beyond Oil to establish a steady cash flow from Latitude's sales, expanding its reach to all customer levels in the United States with minimal overhead costs. Additionally, Beyond Oil will benefit from Latitude's logistics and supply chain expertise as a U.S.-based logistic partner, ensuring seamless distribution and efficient market penetration.



The US$8.3 million minimum purchase commitment by Latitude for the fiscal year 2025 is expected to provide Beyond Oil with a significant revenue stream, contributing to its revenue projections for 2025 and beyond. This commitment, which will be purchased throughout the year on a monthly basis, is a substantial contribution to Beyond Oil's revenue projections for 2025. The agreement's strategic benefits include revenue growth and market reach, focus on strategic deals, and cost-efficient expansion. These advantages align with Beyond Oil's long-term growth strategy, enabling the company to expand its market reach, generate revenue, and build a strong brand presence in the United States while minimizing operational costs and preserving capital for further growth and innovation.

The five-year term of the US Master Distribution Agreement with Latitude Ltd. aligns with Beyond Oil's global expansion plans by providing a steady revenue stream, enabling cost-efficient expansion, and allowing the company to focus on strategic deals. However, during this period, several potential challenges might arise, such as market saturation and competition, regulatory and compliance challenges, dependence on Latitude's performance, and economic downturns. To ensure the success of its global expansion plans, Beyond Oil must be prepared to address these challenges and adapt its strategies accordingly.

In conclusion, Beyond Oil's US$8.3 million Master Distribution Agreement with Latitude Ltd. is a strategic move that positions the company for significant U.S. market expansion and revenue growth. This partnership aligns with Beyond Oil's long-term growth strategy, enabling the company to expand its market reach, generate revenue, and build a strong brand presence in the United States while minimizing operational costs and preserving capital for further growth and innovation. As Beyond Oil continues to execute its global expansion plans, investors should monitor the company's progress and potential challenges to assess its long-term prospects in the food-tech industry.