Global biotech company Zoono Group Limited (ASX:ZNO) (‘Zoono’ or ‘the Company’) is pleased to announce that it has today signed a sales and distribution agreement for the supply of its proprietary poultry formulation utilising Zoono Z71 Microbe Shield (ZPP) with New Zealand based The Z Factor Limited (The Z Factor). This agreement is the culmination of nearly twelve months’ work on behalf of both parties.
The Z Factor’s agreement with Zoono is an important step forward in its intention to build a profitable, diversified sales business utilising Zoono’s suite of products. Zoono is confident that, combined with other opportunities now available, the poultry sector can become a significant contributor to the overall financial performance of the Company in coming years.
Since mid-2018, The Z Factor has been working with a highly reputed poultry broiler farm testing the effectiveness of ZPP for use in the poultry industry. It undertook three, 42-day cycle trials during which broiler sheds were treated with ZPP via a misting process and then tested for pathogen levels using ATP swap tests. The results were then compared to the traditional, formaldehyde-based sanitation product.
A key criterion of the trial was to detrmine whether ZPP could maintain efficacy within broiler sheds over extended periods. The results were conclusive. ZPP can maintain its efficacy over an extended period. Further, ZPP is non-toxic and environmentally friendly; in stark contrast to traditional sanitation products used within the industry.
Key Terms of the Distribution Agreement:
- An initial, ten-year term;
- Minimum annual performance volumes:
o First 18 Months NZD $1.0M;
o Second 12-month period: NZD $2.0M;
o Third 12 month period: NZD $3.0M;
o Thereafter increasing by 10% per annum;
- There are no conditions precedent;
- Either party can terminate the Agreement with immediate effect for material breach or insolvency;
- In addition, Zoono has rights to terminate if there is a material change of control of The Z Factor or it fails to achieve its minimum performance requirements.
For further information, please contact:
Zoono Group Limited
M: +64 21 659 977
E: [email protected]
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- Release Date: 13/05/19
- Successful Poultry Trials Completed – Zoono Signs Agreement with Zoono Poultry LTD
- Price Sensitive: Yes
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