Dotz Nano (ASX:DTZ) share price dips on new agreements

The Dotz Nano (ASX: DTZ) share price is down slightly today as the company announced new supply and distribution deals.

| More on:
Two hands with gloves spray disinfectant onto a surface, indicating share price movements for ASX biotech companies

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 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.

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.

Motley Fool contributor Daniel Ewing 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

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Good news has these businesspeople cheering for joy, partying in a board room.
Bank Shares

2 uniquely Australian reasons why ASX 200 bank shares are outperforming global peers

Three of the Big Four ASX 200 bank shares hit new price milestones today.

Read more »

A group of friends party and dance in the desert with colourful confetti all around them.
Opinions

ASX 200 to finish 2024 higher than expected: AMP

AMP says there were 3 factors that drove the ASX 200 to its new record high above 8,000 points this…

Read more »

a line up of job interview candidates sit in chairs against a wall clutching CVs on paper in an office setting.
Economy

Why did the ASX 200 dip on the latest unemployment figures?

The labour market remains stubbornly resilient with only a minute increase in unemployment last month.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Share Market News

Buy these top ASX ETFs for income in FY 2025

These ETFs could be worth a look if you're searching for income.

Read more »

A woman ponders over what to buy as she looks at the shelves of a supermarket.
Consumer Staples & Discretionary Shares

Have ASX investors missed their chance to buy Woolworths shares?

After a sharp recovery, Woolworths shares might not be on sale anymore...

Read more »

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.
Opinions

DroneShield shares taught me a $29,612 lesson. Stick to your guns

If only I knew what I know now, I'd be $29,612 better off.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Share Gainers

Why Accent, Dusk, Evolution Mining, and Zip shares are pushing higher today

These shares are having a great session. But why?

Read more »