The Zoono Group Ltd (ASX: ZNO) share price has rocketed today after the global biotech announced the appointment of an exclusive distributor for Singapore.
Zoono is a company that specialises in the development, manufacture and global distribution of antimicrobial solutions.
The Zoono share price surged as much as 26% higher in early trade this morning, however, has eased back since to now be trading a mere 0.52% higher at $1.945.
Today's increase comes on the back of a big share price gain yesterday which saw Zoono shares close the day up by a massive 25.65%.
New Singapore distribution agreement
This morning, Zoono announced it has appointed Linco Investments Pte Ltd, a facilities management and distribution company, as the company's exclusive distributor for the Singapore market.
Linco Investments is a Singapore-based company that has been in operation dating back to the 1980s. Its group of companies are involved in importation, distribution and supply to government agencies, as well as private companies and also directly to consumer markets.
Zoona commented that Singapore is a key market for the company as it is the hub of the ASEAN country group and a lot of companies' head offices are located there.
Terms of the new agreement
The terms of the new distribution agreement reported by Zoono include an initial 5-year term with exclusivity in all markets in Singapore. Minimum purchase volumes have also been put in place of NZD$1.5 million in the first 12 months, NZD$2.0 million in year two of operation and NZD$2.6m in year three.
After this three-year period, the minimum purchase requirement increases by 10% per annum. Full payment is required for all products before it is shipped and NZD$400,000 has already been paid for its initial orders.
Strong interest in Zoono's product due to coronavirus
Zoono commented that there has been a high interest in its Zoono technology following the coronavirus outbreak. This is given its proven efficacy against viruses and bacteria, and ability to prevent cross-contamination.
Zoono has seen very strong share price growth since last September, and particularly since the outbreak of the coronavirus in January this year.
On 30 January 2020, the company announced that Zoono's Z71 Microbe Shield Surface Sanitiser was successfully tested in 2014 against bovine coronavirus. Test results confirmed a 99.99% efficacy in five minutes.
Recently, Zoono reported unaudited revenues for the quarter so far to 10 February 2020 of NZ$2.4 million, with on-line sales in Australia and New Zealand contributing strongly.
