The Dotz Nano Ltd (ASX: DTZ) share price is slipping today after the company announced new agreements with Zohar Dalia. Shares in the information technology company are down 0.8% at the time of writing, trading at 36 cents.
The tech company operates in anti-counterfeiting, authentication and tracing. It can embed its 4 products – ValiDotz, BioDotz, Fluorensic and InSpec – into plastics, fuels and chemicals. Furthermore, the solutions have application in the oil and gas industry, bio-imaging and liquid tagging.
Image source: Getty Images
What's the deal?
This morning, Dotz Nano told the market it has entered into supply and distribution agreements with Zohar Dalia. The agreements are for antiviral disinfectant with verifiable surface sanitation.
Zohar Dalia is a subsidiary of Israel's largest manufacturer and supplier of detergent and cleaning products. The supply agreement is that Dotz Nano will supply Zohar Dalia with its nontoxic molecular markers and detectors for Zohar to create a new active surface sanitisation solution.
The distribution agreement will give Zohar the right to sell and advertise the products globally, in approved markets such as the United Kingdom, India, Europe, Australia, and Africa.
Notably, the agreements are not expected to have an immediate material impact on the company's revenue.
Validation
Despite no material impact on revenue, the company says the deals offer good product validation and follow a successful trial within Tel Aviv Airport where 1000 litres of disinfectant were traced and verified.
Other trials were also undertaken in public areas. As such, the solution has the potential for use across a wide range of spaces including airports, hospitals, hotels and public transport.
Management comments
Dotz Nano chair and interim CEO Bernie Brookes commented on the agreements, saying:
Our supply and distribution agreements with Zohar Dalia further highlight the broad applicability of Dotz's authentication technology, and the board believes increases our value proposition even further.
It enables us to enter a new sector in several markets with what the board believes to be a superior solution both in terms of effectiveness and the unique ability to verify proper surface sanitation.
About the Dotz Nano share price
While the agreements may not have boosted revenue in the short term, Dotz Nano says they have "significant potential based on the large addressable global market".
The Dotz Nano share price is up 37% year-to-date and has climbed a massive 792.5% over the past 12 months.
