Why the Universal (ASX:UBI) share price reached a multi-year high today

The Universal Biosensors, Inc. (ASX: UBI) share price reached a multi-year high today after announcing a new distribution agreement.

| More on:
2 businessmen shaking hands, indicating a partnership deal and share price lift

Image source: Getty Images

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 Universal Biosensors, Inc. (ASX: UBI) share price reached a multi-year high of 50 cents today. This comes as the company announced a new distribution agreement with Grapeworks Pty Ltd.

Its high was short lived, however, with the Universal share price pulling back to 46.5 cents, down 5.1% at the time of writing. In comparison, the All Ordinaries Index has remained positive all day, treading at 6,908 points, up 06%.

Distribution agreement

The Universal share price has backflipped from its multi-year high, despite an upbeat announcement.

In today's release, Universal advised it has signed an exclusive distribution agreement with Grapeworks for the Australian market. The partnership will exist for 5 years, with standard renewal and termination options available to both parties.

Grapeworks provides beverage makers a range of winemaking, cider and brewing consumables and supplies. The company specialises in high-end bottle packaging and closures.

In other news today, Universal revealed it has launched a dedicated website page for its Sentia product, a digital wine analyser. The company anticipates this will support the sales and promotion of the new offering.

What did management say?

Commenting on the launch, Universal CEO John Sharman said:

The launch of Sentia represents UBI's first new product in almost 7 years and leverages UBI's core biosensor platform technology. We believe Sentia has the potential to change the way wine testing is performed globally.

Grapeworks is Australia's leading wine supply company offering a complete range of production equipment, winemaking, cider and brewing consumables and supplies. We are delighted to partner with Grapeworks who have shown their confidence in the future of Sentia with a first order for product worth more than $300,000.

Grapeworks managing director Malcom Wilson added:

Sentia offers a unique solution for winemakers and we are pleased to be Australia's exclusive distributor. We are excited by the prospect of selling Sentia and believe the future testing capability for glucose, fructose, and malic acid will add significant value to the winemaking industry in Australia and around the world.

About the Universal share price

The Universal share price has been a strong performer since the beginning of the year, rising 156%. Although lower at the time of writing, the Universal share price hit a multi-year high of 50 cents today.

Universal has a market capitalisation of $84.3 million.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

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

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »