Zoono Group Limited (Company) (ASX: ZNO) is pleased to announce that it has entered into an Exclusive Distribution Agreement with Al Rabban Capital for the distribution of Zoono products in the Middle East and North African.
Based in Doha, Qatar, a rapidly developing economic hub in the Middle East, Al Rabban Capital is a leading provider of professional services with extensive networks, investments and distribution channels in the MENA Region.
As the Coronavirus continues to spread internationally, companies and countries are seeking effective solutions to minimise its impact. Zoono technology, Z-71 Microbe Shield and hand sanitiser, have recently been tested against the COVID-19 surrogate, Feline Coronavirus, and has shown to be effective at >99.99%. These results, coupled with its 30-day extended efficacy on surfaces, have resulted in numerous enquiries from potential customers all over the world. The agreement with Al Rabban Capital demonstrates again the international demand for Zoono technology and its ability to be part of the solution against the spread of viruses and bacteria.
Key terms of the agreement with Al Rabban are:
- An initial 5-year term with a right of renewal for a further 5-years;
- Exclusive for the Middle East and North Africa (with the exception of several smaller countries due to existing relationships) in all B2B and consumer retail markets;
- Minimum annual purchases are:
- NZD$ 4.8m in the first 12 months;
- NZD$ 8.0m in year two; and
- NZD$ 12.0m in year three;
And thereafter increasing by 10% per annum.
- The initial order lodged by Al Rabban is for NZD $2.4m;
- Zoono will deliver its product in 1,000 litre totes which Al Rabban will repackage locally.
Zoono does not have any supply issues for large quantities at this stage. Production will be funded from existing cash reserves and Zoono has sufficient resources, including people, to supply Al Rabban in accordance with their agreement.
It is expecting to ship the first order (or part thereof) imminently. At this stage, Zoono does not expect any logistical issues delivering product to Qatar.
This announcement has been authorised and approved for release to ASX by the Board of Zoono Group Limited.
- Release Date: 25/03/20 13:49
- Summary: Zoono Signs Significant Exclusive Distribution Agreement
- Price Sensitive: Yes
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