The Australian Securities and Investments Commission (ASIC) is suing Holista Colltech Limited (ASX: HCT) and its executive chair Dr Rajendran Marnickavasagar, seeking penalties and declarations from the Federal Court.

The corporate watchdog is also advocating for Marnickavasagar to be banned from managing corporations.

Holista shares are currently in a trading halt, pending a response from the Western Australian company.

The stock last traded for 6.6 cents, giving Holista a market capitalisation of around $18 million.

The accusations against Holista

Marnickavasagar allegedly stated in a YouTube video in February 2020 that Holista's NatShield sanitiser spray killed the coronavirus "involved in the current Wuhan outbreak".

ASIC is claiming this was misleading as the product had not been tested against COVID-19 at the time.

Holista also announced to the ASX on 9 April 2020 that 415,000 bottles of NatShield were purchased by a business named Health Therapies. 

ASIC alleges this $3.8 million order had not been placed at the time.

The ASX company then disclosed to the market on 9 July 2020 that the Health Therapies deal would not be met, and its total revenue for the financial year was back down to just $500,000.

In another ASX announcement in February 2020, Holista claimed it had executed a binding term sheet with another business to collaborate on a new sanitising nasal balm product.

This disclosure is also alleged to be false, as ASIC claims the deal was actually executed 2 months later.

ASIC deputy chair Sarah Court said her organisation is continuing to focus on misleading claims about COVID-19.

"In this case, we are concerned by the allegedly misleading claims, made when there were concerns about a potential pandemic, that NatShield was effective against the virus later known as COVID-19 when it had not been tested against that virus."

The corporate regulator is accusing Holista of violations of the Corporations Act in its civil proceedings.

The post ASIC accuses ASX company of misleading COVID-19 claims appeared first on The Motley Fool Australia.

Holista CollTech is a natural wellness company that operates across 3 main divisions: dietary supplements and personal care, food ingredients, and ovine (sheep) collagen.

In the recent COVID-19 environment, the company's personal care division has been in the spotlight.

Holista has a global collaboration with Path-Away, a plant-based solution that has been proven to kill a broad spectrum of microbes. The solution is an active ingredient in Holista's proprietary sanitiser, NatShield, which is also being developed as a nasal balm.

Back in April, Holista announced that Path-Away had been tested in the UK and was found to be more than 99.99% effective against the feline coronavirus, a surrogate of COVID-19. 

Why is the Holista CollTech share price climbing today?

This morning, Holista announced it has fully acquired the technology of Protectene from Global Infection Control Consultants (GICC), the same company that develops Path-Away.

Protectene is a skin stabiliser for cosmetic applications that maintains all the basic features of Path-Away. However, it is a special formulation that reportedly lasts longer and is more gentle on the skin.

Additionally, Protectene has been developed to sanitise the human skin, including nasal membranes. This makes it relevant for Holista's nasal balm which is currently under development.

As such, Protectene will be included in all future formulations of NatShield for personal use, including the nasal sanitising balm.

Under the agreement, Holista will now own the trademark Protectene and all the rights to use it, including the domains. In terms of production, however, Protectene will still be manufactured by GICC at its exclusive facility in South Carolina.

As part of the deal, Holista intends to grant GICC two million options with an exercise price of 20 cents each, expiring 31 December 2020. However, this is subject to shareholder approval at Holista's upcoming AGM which is likely to be held in the last week of July.

Management commentary

Speaking to the differences between Path-Away and Protectene, Dr Arthur Martin, president of GICC, said:

"While Path-Away has applications for a myriad of uses – human, veterinary, agricultural and environmental – and spans many industries, Protectene is designed specifically for human skin, making it ideal for those with sensitive skin or part of the human body such as nasal membranes."

And as for Holista's plans for Protectene, CEO Dr Rajen Manicka said:

"We intend to offer ProtecteneTM as a more specialised ingredient that uses it exclusively for the NatShieldTM brand . We are confident that Protectene will be a unique differentiator." 

At the time of writing, the Holista CollTech share price has jumped 3.70% to 14 cents per share. This rise takes the company's current market capitalisation to around $38 million, while year-to-date gains are sitting at 77.22%.

The post Why the Holista CollTech share price is climbing higher today appeared first on The Motley Fool Australia.

Coronavirus protection

The anti-pathogenic solution, Path-Away, has been tested in the UK and been found to be 99.99% effective against feline coronavirus, a surrogate of COVID-19. The formulation of the nasal balm will contain ingredients that prolong and improve the effects of Path-Away within the nasal cavity. 

Who is Holista CollTech?

Holista CollTech is a natural wellness company that develops dietary supplements, food ingredients, and personal care products. The company develops, manufactures, and markets 'health-style' products to address evolving needs in natural medicine. 

Holista has a global collaboration with Path-Away, a plant-based solution that is proven to kill a broad spectrum of microbes. The solution is an active ingredient in Holista's proprietary sanitiser, NatShield, that is sold through the personal care division. 

Nasal balm to reduce viral infection

Holista is accelerating the development of the NatShield nasal balm which will reduce the risk of viral infection via the nose, either via inhalation or touch. The nose is the easiest entry point for viruses and opens directly into the sinuses, throat, and lungs. The nasal balm will be formulated so that it is non-irritating, easily applied, and can offer up to 6 hours of protection from viruses and infections. 

While formal award of the global patent is expected to take 12 to 18 months, Holista plans to commercialise the nasal balm in international markets by the third quarter of 2020 under 'patent pending' protection. This is before the onset of the flu season that coincides with winter in the Northern Hemisphere. 

Outlook

Holista saw unprecedented activity in the March quarter with strong growth in sales of its NatShield sanitiser. The increased activity has focused Holista on securing control over the global rights to the application of Path-Away in sanitising lotions and balms. Holista is building new distribution networks and partnerships and fielding numerous inquiries regarding potential opportunities. 

Holista is committed to establishing NatShield as the preferred natural sanitiser globally. The significant sales of NatShield in new markets, coupled with growing demand for the company's food products, leaves the company in a stronger financial position at the end of the March quarter. 

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This week, the Reserve Bank of Australia cut the cash rate to an all-time low of 0.5% in an effort to stimulate the slowing economy. 

But it's not all doom and gloom. Some ASX shares are fighting coronavirus with demand for their products accelerating along with the spread of the virus. So, let's take a look at the ASX shares that are racing ahead of the tragic epidemic. 

Zoono Group Ltd (ASX: ZNO)

The Zoono share price has risen more than 230% this year at the time of writing as demand for its sanitiser products has increased. The company has advised that it is extremely well-positioned to be part of the solution to coronavirus. Late last week, Zoono reported that test results showed the technology used in its hand sanitiser is 99.99% effective against coronavirus. 

In early January, Zoono ramped up production of key active ingredients in its sanitisers. This was a prescient decision as demand for products has been strong. Product orders in excess of NZ$1 million were received in the last two weeks of January, predominantly from China and Hong Kong. Online sales have increased significantly and forward orders and product enquiries are increasingly strong. 

Zoono entered into a distribution agreement with Eagle Health Holdings Ltd (ASX: EHH) in late February for the distribution of co-branded products and offline retail sales in China. Eagle will import Zoono's products in bulk to its facility in Xiamen, China, where they will be packaged and labelled, and then distributed. 

Eagle has more than 300 stores throughout China plus 271 distribution partners which place Eagle's products into more than 30,000 outlets across the country. An initial order for Zoono product valued at NZ$400,000 has been placed. Minimum purchase volumes under the agreement are NZ$1.5 million in the first 12 months, NZ$2.3 million in year two, and NZ$3.1 million in year three. 

Food Revolution Group Ltd (ASX: FOD)

Shares in Food Revolution Group are up more than 50% since mid-February following the announcement the company would be entering the hand sanitiser business. The coronavirus outbreak has created a shortage of hand-sanitiser in the Asia Pacific region with Food Revolution Group looking to meet unmet demand. 

Food Revolution Group's hand sanitiser has been formulated under the newly-formed 'Sanicare' brand and will be produced at the company's Mill Park facility in Melbourne. The facility underwent an upgrade in December including the construction of a self-contained clean room and laboratory.

Food Revolution Group has formulated and sourced the ingredients for its alcohol-based hand sanitiser and commenced production in February. 

The company received its first order for the hand sanitiser, valued at $2 million, in late February. The order is expected to be fulfilled and cash received in 4 weeks. 

Uscom Ltd (ASX: UCM)

Uscom shares are up more than 200% since the end of January following a material increase in orders for its USCOM 1A haemodynamic monitor from China. The National Health Commission of the People's Republic of China Coronavirus Protocol advocates haemodynamic monitoring for severe coronavirus cases. 

The first Chinese hospital to be equipped with an USCOM 1A specifically for the management of coronavirus was commissioned in late January. Uscom is planning to increase manufacturing output by approximately 121% on 10-year average outputs to meet anticipated demand in the second half. Unit orders for the first five weeks of 2020 were up 124% compared to the first full two months of 2019. 

Executive Chairman Rob Phillips said, "the USCOM 1A is a specialised technology developed to simplify diagnosis and management of infectious diseases and is now being implemented widely in China to save the lives of the most seriously ill patients. This epidemic is forcing our technology from the hands of a small number of infectious disease experts into the hands of physicians dealing day to day with tens of thousands of patients with deadly infections."

Aeris Environmental Ltd (ASX: AEI)

Aeris Environmental shares are up nearly 90% since early February with its disinfectant listed by the Singapore National Environment Agency on the list of general disinfectants effective against the coronavirus. The company's proprietary hospital-grade disinfectant, Aeris Active, provides broad-spectrum viricidal, bactericidal, and fungicidal efficacy, and affords long-term protection of at-risk surfaces. 

Aeris is currently scaling up production and redirecting its near term manufacturing capacity to multiple Australian manufacturing sites. This will support the needs of customers and growing demand in China and the Asia Pacific region. 

Holista Colltech Limited (ASX: HCT)

Shares in Holista Colltech have increased over 70% since the end of January as demand for its sanitisers increases. In February, Holista announced it would ship a further 90,000 NatShield sanitisers just days after the first 60,000 units sold out. Fresh orders were received from Malaysia, Australia, and other parts of Asia amidst rising concerns over the spread of coronavirus. 

NatShield sanitisers contain Path-Away, a plant-based active ingredient approved for use by Malaysia's Ministry of Health and Food and Safety Authority and Environmental Protection Authority of New Zealand.

Holista has also accelerated development of a nasal balm version of its sanitiser featuring Path-Away. It intends to file a global patent for the product in March and make the product available to the market by July. 

Biotron Limited (ASX: BIT)

Biotron shares are up more than 60% since the end of January as the company tests its compounds against the current strain of coronavirus, COVID-19. The company develops anti-viral drugs and has compounds that have shown good activity against several strains of coronavirus. Testing is focused on assessing whether Biotron's compounds can inhibit growth in COVID-19. 

Biotron scientists have identified and characterised a protein found in all coronaviruses and have shown that by targeting this protein, the virus could be inactivated. Given Biotron's expertise in antiviral drug development, an assessment of the activity of the company's compounds against COVID-19 is progressing as quickly as possible. 

The post These ASX shares are fighting the spread of coronavirus appeared first on The Motley Fool Australia.

Holista used its proprietary GI Lite formulae – made from extracts of okra, lentils, barley and fenugreek – and partner Veripan's natural sourdough PANATURA to achieve a Glycemic Index (GI) readin of 53.

Switzerland-based Veripan AG is Europe's largest independent supplier of specialist bakery ingredients.

Holista says the breakthrough was achieved in a study which was validated by a leading Australian university and can significantly reduce blood sugar levels caused by consuming white bread and other bakery products.

The two partners will now jointly distribute the PANATURA GI which will allow the launch of the world's first clean-label low GI white bread. Australia will be targeted first, followed by Europe, North America, China, India and the rest of Asia. Holista says the global white bread market is worth US$170 billion – although the company is only aiming at a small part of that market.

The ability of bakers to reduce the GI in white bread, pizza dough and noodles should mean a lower prevalence of conditions such as obesity, diabetes and heart disease caused by the consumption of high GI score foods.

Chairman of Veripan, Mr Meiert J Grootes quipped, "This is the best thing since sliced bread."

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