The market may be sinking lower on Thursday, but that hasn’t stopped the Zoono Group Ltd (ASX: ZNO) share price from zooming higher.
In late afternoon trade the biotech company’s shares are up 3% to $2.06.
Though, at one stage today the Zoono share price was up as much as 9% to $2.18.
Why did the Zoono share price zoom higher?
Investors were buying the company’s shares today after the release of a positive announcement before the market open.
According to the release United Airlines will be adding Zoono Microbe Shield to the airline’s safety and cleaning procedures. Zoono Microbe Shield is an EPA registered antimicrobial coating that forms a long-lasting bond with surfaces and inhibits the growth of microbes.
The airline intends to add the product to its already rigorous safety and cleaning procedures for its entire mainline and express fleet before the end of the year.
At present, United is applying the coating each week on more than 30 aircraft. This includes on seats, tray tables, armrests, overhead bins, toilets, and crew stations.
Toby Enqvist, United Airline’s Chief Customer Officer, commented: “This long-lasting, antimicrobial spray adds an extra level of protection on our aircraft to help better protect our employees and customers.”
“As part of our layered approach to safety, antimicrobials are an effective complement to our hospital-grade HEPA air filtration system, mandatory mask policy for customers and daily electrostatic spraying. We’ve overhauled our policies and procedures and continue to implement new, innovative solutions that deliver a safer onboard experience,” he added.
What impact will this have on sales?
While this has the potential to be a reasonably lucrative deal for Zoono, no details have been provided in respect to sales expectations from it.
Investors may have to wait for an update at its annual general meeting, which is expected to take place early in November.
Motley Fool contributor James Mickleboro 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.
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