- Zoono (ZNO) has entered an exclusive distribution agreement with Beijing Young Technology and Development to deliver its products to the hotel and childcare sectors in China
- Following the outbreak of the Coronavirus, there has been significant interest in Zoono's technology given its proven efficacy against viruses and bacteria
- When applied, Zoono's technology bonds with any surface on which it is applied to then attracts and destroys bacteria and pathogens
- The five-year agreement will see recurring minimum payments starting at just under $1.5 million, with Zoono already receiving more than $743,000 from Beijing Young
- Zoono's share price is currently up a steady 24.1 per cent with shares trading for $1.24 apiece
Zoono (ZNO) has entered an exclusive distribution agreement with Beijing Young Technology and Development for the hotel and childcare sectors in China.
Following the outbreak of the Coronavirus, there has been unprecedented interest in Zoono's technology given its proven efficacy against viruses and bacteria and ability to prevent cross contamination.
When applied, Zoono's technology leaves behind a mono-molecular layer that bonds with any surface on which it is applied to then attracts and destroys bacteria and pathogens.
Its 'physical kill' replaces the need for dangerous chemicals, poisons and alcohols, and the method of rupturing the cell means it cannot mutate, preventing the development of superbugs.
Under the deal Zoono will supply its products exclusively to all childcare and hotel markets in China over a five-year period.
The minimum purchase volumes include NZD$1.5 million (AUD$1.43 million) in the first 18 months, NZD$2.3 million (AUD$2.20 million) in the second year, and NZD$3 million (AUD$2.87 million) in the third year.
In the final two years of the agreement, minimum purchase volumes will increase by 10 per cent per year.
Zoono has already received NZD$775,000 (AUD$743,341) from Beijing Young Technology and Development.
This agreement is another step in Zoono's strategy to focus on specific sectors and on the appointment of distributors with expertise in these market segments.
The company has also sought to exercise greater control over the activities and performance of its distribution arrangements with respect to pricing, marketing strategies, minimum sales performance and delivery standards and protection of its intellectual property and brand.
This agreement in the fourth distribution agreement entered into by Zoono for an industry sector in the Chinese market in the lat six months.
Zoono's share price is up a steady 24.1 per cent with shares trading for $1.24 apiece at 12:25 pm AEDT.