Why the Zoono (ASX:ZNO) share price is jumping 8% higher

The Zoono Group Ltd (ASX:ZNO) share price is pushing higher on Wednesday after the release of a company update…

The Zoono Group Ltd (ASX: ZNO) share price is among the best performers on the ASX this morning.

At the time of writing, the antimicrobial solutions provider's shares are up 8% to $1.39.

high share price

Image source: Getty Images

What did Zoono announce?

This morning Zoono released an update on a number of company developments, including some large sales and distribution agreements.

One of those developments included testing of Zoono's Z-71 Microbe Shield Surface Sanitiser by the Dubai Central Laboratory Department.

That test observed that there is a complete reduction of test bacteria (99.9%) on all provided material surfaces till 30 days from the initial coating, except in Rubber and Wood surfaces. The rubber and wood surface has some viable growth on the 30th day with a reduction of 90% test bacteria.

Additional testing undertaken by Intertek Caleb Brett in Dubai found a 100% reduction between the slide control recovery level and Zoono Z-71 recovery level at 24 hours, 7 days, and 30 days.

Following this comprehensive testing, Zoono has now received the Emirates Authority for Standardisation and Metrology (ESMA) Certificate of Conformity.

Supply agreements.

In light of this certification, the company has entered into a supply agreement with Fine Hygienic Paper in the Emirates and has received the initial NZ$1.5 million deposit against the first-year purchases.

The overall agreement is for five years and has minimum annual performance target volumes of NZ$21.5 million for the first 12 months. After which, it has target volumes of NZ$28.5 million in the second year, NZ$35.7 million in the third year, and then a 5% increase thereafter.

Zoono also revealed a three-year agreement in Russia with hygiene services company ECO-SALUS. By the end of the term, its volumes are expected to be a minimum of NZ$5 million a year.

New product launch.

A final development has been the launch of a new product, which management notes is diversifying its range of antimicrobial products.

The new product is a face mask treated with Zoono, protecting the wearer from pathogens over a period of time.

But this may not be the last product launch. Management advised that it continues to work with its globally recognised customers and distributors with the aim of developing new products to help them protect their staff, customers, and communities.

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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