PPK (ASX:PPK) share price wobbles on joint venture news

The company will manufacture anti-viral and anti-bacterial face masks with a new partner…

| More on:
A group of young people clowning around wearing COVID-19 masks

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

Shares in PPK Group Limited (ASX: PPK) are up and down in morning trade today. This comes after the boron nitride nanotubes (BNNT) company announced a joint venture to manufacture anti-viral and anti-bacterial face masks.

At the time of writing, the PPK share price is down 0.6% trading at $19.92, after touching a high of $20.6 near the open.

PPK eyes new revenue stream

In today's statement, PPK advised it has teamed up with Xefco to form a new company called Survivon.

Founded in 2018, Xefco uses advanced manufacturing methods to create textile technologies with additional functional benefits. In particular, the group focuses on antiviral technology.

The newly-formed business will immediately start local production of anti-viral and antibacterial face masks using Xefco's ground-breaking technology. PPK advised it has purchased a mask factory in Brisbane and has orders already in hand. Up to 5 million masks can be produced each month.

The company said the medical-grade face masks would contain an ultra-thin coating of 99.95% pure copper developed by Xefco and Deakin University.

An independent study by the Peter Doherty Institute for Infection and Immunity revealed positive results in May. It showed that the new treated textiles were able to inactivate the virus associated with COVID-19 by 97.79% in 5 minutes, and 99.95% in 15 minutes.

PPK and Xefco will each own 47.6% of Survivon with the remaining balance held by senior manager, Matthew Bailey.

Under the terms of the partnership, PPK will contribute $4.5 million in cash on completion in exchange for its equity, less the transfer of PPK's recently acquired business, Mask Innovation to Survivon for approximately $1.6 million.

The cash will be used as ordinary working capital for the new business.

Management commentary

PPK executive chair Robin Levison commented:

The chance to combine the manufacturing assets of PPK's Mask Innovation business with leading science developed by Xefco in conjunction with Deakin University represents a tremendous commercialisation opportunity with global application.

It is also an incredibly timely one and yields a likelihood of making a very practical and immediate difference in combating one of the great healthcare issues of our time.

About the PPK share price

Over the last 12 months, the PPK share price has accelerated, gaining around 420% since this time last year. Year-to-date, its shares have advanced 240%.

PPK presides a market capitalisation of roughly $1.78 billion, and has 89.29 million shares on its books.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »