Why the Zoono share price rocketed another 19% higher today

Here's why the Zoono Group Ltd (ASX: ZNO) share price has rocketed another 19.26% today to close at $2.26.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Zoono Group Ltd (ASX: ZNO) share price rocketed another 19.26% today to close at $2.26. This follows what appears to be further positive upwards market momentum following two ASX announcements made last Friday.

The first announcement was regarding successful test results for Zoono's products against COVID-19, while the second announcement relates to an update on its distribution agreement with Eagle Health Holdings Ltd (ASX: EHH).

Zoono is a global biotech company that specialises in the development, manufacture and global distribution of antimicrobial solutions.

Since 10 January, the Zoono share price has rocketed upward from $0.56 to reach today's closing price of $2.26, a massive 304% gain. In the last 3 days of trading (including today), Zoono shares have shot up 66% from last Wednesday's closing price of $1.36.

Zoono product >99.99% effective against coronavirus

In an ASX announcement last Friday morning, Zoono revealed it had received a report for laboratory tests undertaken against COVID-19.

According to Zoono, the results indicated that Zoono's Z-71 Microbe Shield is more than 99.99% effective against COVID-19. This microbe shield is the same Zoono technology used in its Zoono hand-sanitiser.

The company confirmed to the market that its products had been successfully tested against a variety of pathogens for periods of up to 30 days on surfaces and for 24 hours on hands.

The company added that this recent test further demonstrates the ability of the Zoono technology to be part of the solution to prevent and protect against the spread of the COVID-19 virus.

Update on the agreement with Eagle

In a second announcement to the market last Friday, Zoono relayed an announcement from Eagle providing an update to the distribution agreement between the two companies.

Eagle is a health and nutritional products business that develops, manufactures and distributes products into 26 provinces in China.

Under the agreement, Zoono and Eagle have a 'co-branding' arrangement through which Eagle will import Zoono's formulations in bulk to Eagle's wholly-owned good manufacturing practice (GMP) certified pharmaceutical facility in Xiamen China. At this facility, Eagle will carry out the labelling, packaging and distribution of Zoono's formulations into Eagle's existing channels.

On Friday, Eagle announced it was awaiting the final inspection of its GMP pharmaceutical facilities by the Xiamen's local government. This was in regard to the additional licenses required by Eagle to facilitate the packaging and distribution of Zoono products. This final inspection is currently scheduled for 3 March.

Additionally, Eagle also announced that the first shipment from Zoono, approximately 4 tonnes of product, was being prepared for transport to Xiamen and was scheduled to be despatched from Auckland that very day.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Farmer with arms folded looking ahead.
Broker Notes

What is Morgans' view on GrainCorp shares after monster sell-off?

Is it time to buy-low after the sell-off?

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

Where I'd invest $10,000 into ASX dividend shares right now

I think these businesses are a strong buy for passive income.

Read more »

three men stand on a winner's podium with medals around their necks with their hands raised in triumph.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week this Friday.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A business person directs a pointed finger upwards on a rising arrow on a bar graph.
Share Gainers

3 ASX 200 stocks storming higher in this week's sinking market

Investors have sent these three ASX 200 stocks soaring this week. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Market News

Why Aeris Resources, Netwealth, Nova Minerals, and Paragon Care shares are dropping today

These shares are under pressure on Friday. Let's find out why.

Read more »

Two smiling work colleagues discuss an investment at their office.
Share Gainers

Why 4DMedical, Develop Global, EOS, and Maas shares are racing higher today

These shares are ending the week on a high. But why?

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Share Market News

Downer EDI wins $870m NZ highway maintenance contracts: What investors need to know

Downer EDI wins major New Zealand state highway maintenance contracts worth NZ$870 million, expanding its infrastructure portfolio.

Read more »