Zoono Group signs ‘significant’ 10-year supply agreement for antimicrobial product
In the first four years of the agreement, MicroSonic will purchase a minimum of US$23 million-worth Zoono’s Z71 Microbe Shield surface sanitiser.
Biotech company Zoono Group (ASX: ZNO) has signed a “significant agreement” with MicroSonic LLC to supply its innovative antimicrobial product into automotive and cruise industries.
Both Zoono and MicroSonic have spent 12 months extensively testing and trialling the Zoono Z71 Microbe Shield surface sanitiser and have collaboratively created a proprietary antimicrobial system.
Under the 10-year distribution deal, Zoono and MicroSonic will supply the antimicrobial products exclusively to Turtle Wax Inc for car wash and automotive industries.
MicroSonic also has the rights to supply the product to the cruise industry, which has well-known issues regarding on-board bacterial and viral outbreaks.
The deal allows for MicroSonic to purchase a minimum US$2 million (A$2.86 million) worth of Z71 Microbe Shield products in 2020, with this amount growing annually.
All up, over the first four years, MicroSonic will purchase at least US$23 million (A$32.9 million) worth of Z71 Microbe Shield products.
After 2023, where MicroSonic is expected to by US$12 million (A$17.17 million) worth of product, MicroSonic’s purchases will rise annually by 10%.
“We are very pleased to be able to announce this agreement following 12 months of extensive testing,” Zoono managing director Paul Hyslop said.
“This agreement, again, demonstrates the versatility of Zoono’s antimicrobial product with additional industries being able to benefit from its effectiveness.”
“Testing and trials are currently being undertaken by other potential partners in multiple industries and we hope to announce these agreements as they come to fruition,” Mr Hyslop added.
Zoono’s antimicrobial products
Zoono uses the ZOONO molecule, which is a unique antimicrobial molecule that bonds to any surface and kills pathogens including bacteria, viruses, algae, fungi and mould.
Unlike traditional disinfectants, Zoono’s technology modifies any surface making it antimicrobial for extended periods. The product stays active and bonded to surfaces for up to 30 days and doesn’t wash off with normal cleaning.
On skin, the product remains for 24 hours, whereas, on textiles, it is active for up to 100 washes.
All of Zoono’s products incorporate this molecule and come as sprays, wipes and foams.
The products have acquired numerous regulatory approvals and include wound cleansers, hand and room sanitisers, surface and hand wipes and laundry sanitisers.
Shareholders responded positively to the distribution deal, with Zoono’s share price rocketing more than 85% to reach $0.145 by mid-morning.