17/10/2017 - 13:37

Quintis terminates supply deal

17/10/2017 - 13:37

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Troubled Indian sandalwood producer Quintis has ended its sales agreement with a Chinese customer that was being investigated for customs evasion.

Quintis terminates supply deal
Quintis held a five-year indian sandalwood supply agreement with SRL.

Troubled Indian sandalwood producer Quintis has ended its sales agreement with a Chinese customer that was being investigated for customs evasion.

Perth-based Quintis offered no reasoning for its decision to terminate the sales contract with Shanghai Richer Link other than via referrence to a statement it made to the ASX on March 27.

In that statement, Quintis said it had become aware that SRL was one of a number of sandalwood importers in China to have been investigated for allegedly avoiding custom duties.

At the time, no SRL officials had been charged. However, Quintis said it would immediately terminate its contract with the Chinese customer if it became aware that the customer had been charged or it had been engaging in customs evasion.

Quintis continues to work on the development of the Chinese market and is in active dialogue with a number of potential customers to recommence the supply of its wood and oil to the large Chinese market,” the company said today.

The agreement with SRL was formed last year, with Quintis to supply timber to the Chinese customer for five years.

It became concerned after receiving no orders for the year.

Quintis shares have been suspended from trade since May, after a damning report on the business by a US-based activist short-seller, Glaucus Research Group.

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