The Advance NanoTek Ltd (ASX: ANO) share price has come under pressure on Thursday after the release of an announcement.
The sunscreen-focused advanced materials company's shares are down almost 9% to $4.98 this afternoon.
What did Advance NanoTek announce?
This afternoon Advance NanoTek released a sales and coronavirus update and revealed that its managing director will be selling some of his holding.
In respect to its sales update, the company advised that sales by its US distributor are up 280% for the seven months to January 31 compared to the same prior seven months.
The release also reveals that it is now seeing the first signs of sales growth with its new distributor network in Europe.
A large manufacturer in Europe is looking to trial Advance NanoTek's XP for large volume sunscreen sales to the United States and Australia. In addition to this, there are a further 35 new customers trialling its zinc powders and dispersions.
Coronavirus update.
According to the release, whilst its current orders remain strong, it is starting to witness a short term negative impact from the coronavirus outbreak on its sales.
The company advised that its distributors in the United States have become aware that many American citizens are cancelling or postponing their travel plans for the upcoming summer.
In addition to this, the company is aware that tube suppliers from China have delayed supplies to key manufacturers in Europe and the United States.
At this point, management anticipates that this will have a modestly negative impact on its sales target of $30 million for the current financial year.
Insider sales.
The company has also announced that its managing director, Geoff Acton, has been given approval by the board to sell shares in the coming weeks.
It explained: "These transactions reflect his commitment to take up his next tranche of options and will reinvest into ANO $294,000 to receive these shares. In addition, Mr Acton is finalising a family settlement matter with some of these transactions and his privacy in this matter is to be respected by all."
