Effective on Nov. 3, Trxade makes a marketing agreement with Amazon for the promotion and marketing of Amazon Lockers.
Trxade Group Inc. (MEDS) stock made a bold move in the premarket Tuesday as it surged up to 50% before the stock opened the session at $6.36, up from the previous close of $4.30.
Shares of Trxade traded at the day’s high of $7.72, the highest since July 28, 2020. MEDS closed the trading session at $6.10, up by 41.86%.
The stock rose for a good reason as the company recently completed a new solution marketing agreement with Amazon.com Services, LLC. The agreement deal was reported in aForm 8K filingpursuant to Section 13 of the Securities Exchange Act of 1934.
The agreement became effective on Nov. 3, 2020, and under the agreed deal, Trxade will promote and market Amazon’s storage lockers, which is a secure pick-up program developed to support the customers to pick up Amazon packages at their convenience across the United States.
The marketing agreement hasa one-year term and if both the parties do not terminate the agreement within 30 days written notice after its expiry, it will automatically be extended for one more year.
On a quarterly basis,Amazon will pay a sliding fee to Trxade for the marketing services it will provide. The fees will depend on each independent pharmacy Trxade introduces to Amazon and that enters into an agreement with the Amazon Locker.
The statement from the 8K filing noted:
“The agreement includes customary limitations of liability and terms requiring that we indemnify Amazon under certain circumstances.”
The termination of the agreement depends upon certain conditions including:
- In case, among both the firms, one may terminate the agreement with 30 days prior written notice after the completion of one year.
- If Trxade commits a material violation of the law, Amazon will immediately terminate the agreement.
- If the material term of the agreement is breached by any of the companies (in the case of Trxade after a 30-day period and in Amazon’s case immediately.)
The company is highly engaged in evolving its business to business web-based platform which allows various pharmacies and national suppliers to get involved in trading of the pharmaceutical products.
In addition, Trxade Group (MEDS) recently reported its Q3 earnings which soared up 127.24% from the prior quarter to $145.82 thousand. While sales reported a decrease of 3.96% to $6.33 million from Q2.
As the company recovers from the pandemic impact, the collaboration deal with Amazon will help it to revive its financial and business situation. Trxade Group, Inc. (MEDS) will be participating in the upcoming Virtual Fall Investor Summit hosted by Investor Summit Group, taking place between Nov. 16 to 18, 2020. The CEO of Trxade Group, Suren Ajjarapu will be giving a virtual presentation to the audience.