Why the Nanoveu (ASX:NVU) share price is roaring 14% higher

The Nanoveu Ltd (ASX: NVU) share price is roaring higher after announcing two new international distribution agreements. Here are the details.

| More on:
hand on touch screen lit up by a share price chart moving higher

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 Nanoveu Ltd (ASX: NVU) share price is roaring higher in afternoon trade. This comes after the company announced that it has signed two international distribution agreements.

At one point, the nanotechnology company's shares reached an intraday high of 7.2 cents. However, some profit-taking has led its shares to retrace back to 5.7 cents, up 14%.

Established in 2018, Nanoveu is focused on developing a range of products for the mobile phone and digital displays market. The company's flagship product, Nanoshield, is an antiviral protection technology that can be applied to a number of surfaces. This includes mobile phone covers, mobile phone cases, tablets, and more.

What's pushing the Nanoveu share price higher?

The Nanoveu share price is on the move after providing an update that could potentially boost its sales.

According to its release, Nanoveu advised that it has entered into an exclusive distribution agreement with Vital Medikal for its Nanoshield products to be delivered to the Republic of Turkey.

Nanoveu stated that while there were no product sale guarantees, a US$575,000 annual purchase target has been set for Vital Medikal to hold exclusivity rights. The agreement, effective immediately, will run for a 12-month period with an option to extend further pending a sales performance review.

With over 25 years of experience in the medical field, Vital Medikal is an established medical equipment distributor in Turkey. The company supplies crucial devices such as respirators, cathodes and pre-filled syringes to Turkish hospitals, clinics, and medical facilities.

It is believed that the Nanoshield products will complement Vital Medikal's existing business-to-business customer base.

In addition to the first agreement, Nanoveu also signed a non-exclusive distribution deal with Asia Pro Lab for Hong Kong. The initial arrangement does not stipulate the minimum sales that are to be achieved. The non-material purchase agreement of Nanoshield will be valid for a term of 12 months and automatically renew thereafter.

Formed in 2009, Asia Pro Lab specialises in detailing and customisation of interior and exterior alterations on vehicles. The company primarily uses vinyl wrapping to suit customer needs. Adopting Nanoshield products with Asia Pro Lab enables antiviral and antibacterial protection properties within the customised works.

What did the head of Nanoveu say?

Nanoveu executive chair and CEO Alfred Chong commented:

We are continuing to see an expansion of our distribution network across the globe, which is reflective of the momentum Nanoveu has built. It is clear that there is immense desire for greater protection against bacteria and viruses and this demand is not just from first-world countries – it is from a global phenomenon.

The company will continue to target further distribution agreements in major markets, which permit greater avenues to generate sales revenue from Nanoshield products.

The Nanoveu share price has gained 42% from this time last year, but is down 18% for 2021.

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 woman leaps into the air with loads of energy, in a lush green field.
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a Thursday to remember today.

Read more »

A businessman keeps calm in the face of inflation
Share Market News

$42 million tops the most notable ASX 300 insider buys this earnings season

Post-earnings season is a common time of year for company directors to buy up more stock for their personal portfolios.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Share Market News

These 2 ASX 300 shares were just upgraded by brokers

Brokers are expecting good things from these stocks.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Broker Notes

Goldman Sachs says this US stock is replacing Tesla in the Magnificent Seven

And no, it's not a tech company. It's in the healthcare sector.

Read more »

ETF written in gold with dollar signs on coin.

4 hot ASX ETFs smashing all-time highs on Thursday

ETFs are on fire this Thursday.

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Australian Finance Group, Chalice, DroneShield, and ResMed are sinking today

These ASX shares are having a tough time on Thursday. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising

These ASX shares are having a strong day. But why?

Read more »

A young woman dressed in street clothes leaps happily in the air with the focus on her bright red boots that are front and centre for the camera.

I'm listening to Warren Buffett and loading up on cheap ASX shares in March

I love the look of these stocks at these prices.

Read more »