KUALA LUMPUR (Nov 23): Peterlabs Holdings Bhd's wholly-owned sub-subsidiary Osmosis Nutrition Sdn Bhd has awarded an exclusive agreement to China's Henan Chia Tai Biochemistry Trading Co Ltd (CTB) to distribute and promote Osmosis Nutrition's products in China.

In a filing with Bursa Malaysia today, Peterlabs said Osmosis Nutrition had on Nov 7 entered into the distributorship agreement with CTB for the appointment.

Osmosis Nutrition is a manufacturer and distributor of animal health and nutrition products. Its products consist of Osmofat100, Osmofat 300 and related fat powder products.

Peterlabs said both parties are confident the sale of the products is expected to enlarge its order book and to provide a steady stream of revenue over the next three years.

"Barring any unforeseen circumstances, this agreement is expected to contribute positively to the earnings and earnings per share of the group as the earnings would be realised in stages over the tenure of the agreement.

"The agreement will further increase and enhance the existing order book of the group," it noted.

Peterlabs said the agreement is for three years and will be automatically renewed for a further three years if no party violates the agreement.

"As at to-date, the group is unable to quantify the contract sum as it is dependent on the distribution channels of CBT in China," it added.

Peterlabs shares were untraded today. They were last traded at 27 sen, with a market capitalisation of RM58 million.