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.
