The Renergen CDI (ASX: RLT) share price will be on watch this morning following the announcement of a milestone agreement.
At yesterday's market wrap, the helium and LNG producer's shares finished the day at $2.27.
Partnership agreement
Renergen shares could be on the move today after the company provided investors with a positive update.
According to this morning's release, Renergen advised it has entered into an agreement with DPD Laser for the supply of 110 Cryo-Vacc cases.
Established in 1999, DPD Laser is a leading South African express logistics company. The group specialises in time-sensitive courier services as well as road freight express delivery.
Under the deal, Renergen will sell its Cryo-Vacc cases at a fixed price using a combination of 3 different case sizes. The large case holds up to 2,400 vials, medium case up to 1,200 vials, and the smaller case up to 240 vials. Cases can be distributed to suit customer needs such as using the smaller case for pharmacies and medical clinics.
Renergen noted that the agreement has been signed ahead of the Phase II vaccination program for South Africa.
The deal is not expected to be material from a revenue perspective but represents another checkpoint passed by the company.
The Cryo-Vacc cases are expected to be delivered to DPD Laser towards the end of next month.
Words from management
Renergen CEO Stefano Marani touched on the company's progress, saying:
We believe the technology works, and as time progresses, we will continue to enhance and improve the Cryo-Vacc as we gain valuable data from people in the field using the product.
The analogy we see here is that version 12 of a smartphone was not the first version released; they got there over time. Cryo-Vacc will continue to evolve, and this is the exciting part as it becomes more flexible and useful in the field, which is the goal.
DPD Laser CEO Anton Visagie, added:
We have the ideal solution, storage and distribution, given the current uncertainty on which vaccines will be used at various vaccination points across South Africa.
Our technology can handle all three required temperatures of 2-8 degrees, -20 degrees and -70 degrees Celsius without being dependent on an external power supply for periods between 7 and 35 days.
About the Renergen share price
For most of 2020, the Renergen share price remained relatively flat until surging at the beginning of 2021. The company's shares have gained more than 120% year-to-date. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained a modest 77% over the same time frame.
