The Advance Nanotek Ltd (ASX: ANO) share price will be one to watch today. The zinc-oxide powder producer released an announcement to the market yesterday, only minutes before the ASX closed.
In the update, Advance Nanotek confirmed the receipt of its manufacturing license from the Therapeutic Goods Administration (TGA).
The Advance Nanotek share price was trading at $4.16 a share at yesterday's close, up 1.22% for the day.
Image source: Getty Images
Preparation for a sunny season
According to the release, the company has received the necessary TGA Manufacturing License for its production facility in the Brisbane suburb of Rocklea.
This comes just over a week after the company advised it was expecting TGA approval for 18 zinc-based dispersions and 4 new sunscreen products. In that same announcement, Advance Nanotek divulged it was expanding into bulk intermediate sunscreen production. At the time, the company anticipated TGA approval for four bulk SPF50+ intermediate sunscreen products within two weeks.
The latest announcement confirms the company can now manufacture all of the aforementioned products in Brisbane. Currently, 6 vegan/organic zinc and zinc-based powders already have TGA approval for the product itself. Additionally, the 4 new bulk intermediate products are still under development.
Perhaps a point of difference, all products manufactured are non-nano, gluten-free, and have no preservatives. Advance Nanotek said it would start manufacturing immediately and actively promote sales of these products to its global distribution network.
Interestingly, the company noted it does not expect a material revenue impact until FY22.
It's been cloudy for the Advance Nanotek share price
The COVID-19 impacts linger for Advance Nanotek, as travel remains more broadly halted. Although the company's zinc oxide chemicals have widespread applications, sunscreen is the main focus. While international borders remain locked, not too many people are going on their sunny beach vacations. Hence, the demand for sunscreen has slumped over the past 12 months.
Despite the implication, the Advance Nanotek share price has returned 8% in the last year. However, it has been one wild ride to get there, with violent sways between $5.94 to $2.92.
Additionally, 8% is still underperforming the S&P/ASX 200 Index (ASX: XJO) return of 36% over the same timeframe.
