- Holista CollTech (HCT) has downgraded the number of total sales it expects from its hand sanitiser product Natshield, from $3.8 million to $500,000
- The company said the downgrade is due to COVID-19 travel restrictions and 'race-related unrest' in the U.S. affecting its supply chain
- Meanwhile, the downgrade comes after the company had to issue three corrections about the efficacy of the product on COVID-19
- Holista's share price is down 34.3 per cent, at 9.2 cents per share
Holista CollTech (HCT) has downgraded its $3.8 million in expected sales from its hand sanitiser product, Natshield, due to COVID-19 and race riots.
Instead, the wellness company now believes sales of Natshield will total $500,000. That includes all sales over the six months to June 30, 2020.
Following the significant downgrade announcement, the company's share price plummeted.
Shares opened at a trading price of 11.5 cents each, and quickly hit a low of 8.2 cents per share. The price then adjusted to close slightly higher.
The downgrade in sales is being blamed on COVID-19 restrictions and lockdowns, as well as 'race-related unrest' in the U.S., as the two issues disrupted its supply chain.
Measures to prevent price-gouging on hand sanitiser products have also been blamed for the downgrade.
Today's news is the latest setback for Holista, who recently had to issue a series of corrections regarding the natural hand sanitiser product.
In particular, the company had to correct claims its product was effective in combatting the coronavirus, when it's only been tested on a surrogate, the feline coronavirus.
Holista is undertaking additional tests on the hand sanitiser, to see whats effect it does have on the coronavirus.
However, the corrections in February and April diminished the company's share price. It hit a high of 23.5 cents in February, before falling back down to single digits.
Shares in the wellness company closed down 34.3 per cent today, July 9, at 9.2 cents per share.