The Zoono Group Ltd (ASX: ZNO) share price is flying higher today after the sanitiser producer released a company update. The announcement contained several positive pieces of information.
At the time of writing, the Zoono share price has retreated slightly but still remains a staggering 38.3% higher to 83 cents per share.
US tested and approved boosts Zoono share price
According to the release, Zoono’s Microbe Shield surface sanitiser has been tested by an independent laboratory in New Jersey, United States. The US FDA regulated facility found Zoono’s flagship sanitiser to be successful against Human Coronavirus 229E. Previously the products had only been tested against the COVID surrogate feline coronavirus.
Additionally, the product now meets the US EPA Standard ASTM E1053, which relates to the assessment of the virucidal activity of chemicals.
Following the US regulatory approval, the company has sourced new distribution partners in Norway, Luxembourg, Greece, and Poland. Reportedly initials orders are pending in each country.
Deals for days
In another win for the Zoono share price, the company has gained another two highly notable partnerships. After an extensive market evaluation, Microsoft Corporation (NASDAQ: MSFT) has offered Zoono the opportunity to be an approved supplier to the tech company’s office network.
An initial purchase of Zoono’s sanitiser products has already been received for the Redmond Campus. This location is Microsoft’s corporate headquarters in Washington, with 125 buildings and 53,500 staff across the campus. A full US rollout will be engaged once employees return to the campus in May.
Secondly, Zoono has partnered with Boeing Co (NYSE: BA) to distribute Microbe Shield to airlines globally. The flagship sanitiser meets the Boeing standard for use in aircraft interiors. As a result, Boeing has made the product available from its official online store.
Sales, production, and intellectual property
Zoono indicated that its orders shipped for Q3 FY21 are in excess of $5 million. This is despite global freight and logistic challenges. Furthermore, Fine Hygiene Group is on target to meet sales projections of US$7 million over the next 6 months. Once relevant regulatory requirements are satisfied, Fine will expand into new markets including Europe, United States, and Australia.
Lastly, the company has brought its plastic bottle production in-house. This is in an effort to avoid supply chain bottlenecks. Zoono plans to commence production in the near future. As a means of protecting the company’s specialised formulations, global patent applications have been submitted.
Zoono share price rejuvenation
The update is a sight for sore eyes, after a year of disappointing share price performance for Zoono shareholders. Even with the inclusion of today’s gain, the share price is down 53% in the past 12 months.
However, this seemingly positive update has brought a renewed interest to Zoono. In fact, the traded volume is in excess of 5.8 million shares — more than 17 times the shares monthly average volume.
The company’s share price remains volatile due to its small market capitalisation of $135 million.
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft. 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.
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