The Directors of Mediland Pharm Limited announced that they have entered into a binding term sheet with Careline Australia Pty Limited for Careline to develop two beauty products for Mediland Pharm to exclusively market and sell globally, including in its retail outlets, including Mediland's Australian and New Zealand stores and Ian's Health Lounge stores in China. Careline is a company in the healthcare and wellness space, focusing on producing quality health products and skincare products for Australia and the international markets. Careline is also an existing supplier of Mediland. The initial products under the agreement, to be provided within two months of the executed term sheet are The Food Revolution Group Limited Collagen powder and Chantelle-rose stem cell bio-repair mask. These products will be showcased by both companies at the Shanghai Importation Expo in November 2019. Other products will be developed as mutually agreed between the parties. In exchange for this product development and exclusive supply arrangement, Mediland has agreed to prepay Careline $500,000, which will be deducted from any amounts payable to Careline by Mediland or an affiliate of Mediland under any sales agreements between the parties going forward. Such prepayment (deducting any amount paid to Careline under relevant sales agreement) will be returned to Mediland should Careline fail to develop those products. The performance of Careline under the term sheet is guaranteed by the owner of Careline, Dr. Tao Li.