ZNO Company update - 16th December (Marked as price-sensitive, understandably so)

MENA update - Middle East & Africa

• Additional testing conducted in Dubai has proven the longeveity claims that the company had previously claimed about its sanitiser related products.
• Test results were all positive 
• On the back of the test results, Zoono have now received the relevant certification from the UAE regulatory body to sell product in this region.
• Following on, ZNO have entered into a supply agreement with Fine Hygenic Paper LLC & received an initial $1.5m NZD deposit on first year purchases
  • Target volumes are very positive
    • First 12 months - $21.5m
    • Second 12 months - $28.5m
    • Third 12 months - $35.7m & 5% onwards in the fourth
• See Zhanginu's straw on the relevant margins for what these deals mean, he covers them quite well (IMO 50-60% margin is realistic)

Russia update

• Positive testing has seen approval granted for ZNO products
• Following this the comapny has engaged with a firm, ECO-SALUS LLC, producing goods to a value of $529,000 (initial $70k deposit received in advance)
• See the annoucement for the performance volumes (significantly less than the UAE contract)
• This deal is exclusive with Russia.

New Product

• Releasing of a new face-mask product that contains ZNO anti-microbial solution (differs from a standard mask)

Overall;

A very positive annoucement and the markets rather sluggish reaction (shares up ~4%) again makes me more confident in holding shares in this company - the market cannot perceive this company to be profit generating in future years.

Note - All figures in $NZD

Apologies I am late to the party, but here is my breakdown of the AGM Presentation of last week.

UK

·         Regulatory approval in most EU countries, with a list of others where regulatory approval has been submitted, or the process is underway

·         Key customer in the UK – Atalian Servest (services rail networks across most of UK)

o   Sales pipeline;

§  Zoono AG – fruit & veg sector

§  Trans Dev – global passenger trains

§  Opportunities in Russia – are pending reg. approval – this is only a matter of time

Aus/NZ

·         Focus is on B2b – better margins and order

·         Digital marketing specialist employed to drive b2c (worth it…?_)

·         Partner with Qantas for “fly-well” program

·         New agreement to distribute to John Lyng Group

·         Focus on partnering with health care solutions – no break through yet but pipeline is always there.

US

·         New GM

·         New chemical reactor, allowing for raw materials to be self-developed, higher production capabilities

·         Regulation and EPA testing is underway in related to COVID longevity claims – this is sure to be positive news to market once finished

·         New website to be launched in relation to B2c ….

·         Expansion of distributors in Panada, Jamaica, Mexico etc

Current top customers

·         United Airlines – entire airline fleet (this contract was only signed in q1 and hence won’t start fruiting till q2, q3 onwards)

·         CVS – Pharmacy retailer

·         California, Texas, Florida – jails, government offices and squad cars

o   MANY MORE

Top Prospects;

·         7 Eleven stores – currently testing versus a competitor (68,000 stores potential)

·         ARDA – 400k resorts

·         Boeing

·         Many big contracts with initial orders placed

·         UPS logistics – looking to treat facilities

·         Delta airlines – awaiting testing results and eager to take the same path of United Airlines!!

·         Many many trials underway, LAX airport, Grand Rapids Airpoty, Olympia Entertainment, Microsoft offices, Virgin Hotels and many more

Middle East & Africa

·         Development of new sales channels underway in Bahrain, SA, Egypt and Africa

·         Further testing

*I do hold some ZNO shares

This AGM was a very positive presentation in my view and just goes to show how deep the sales pipeline for the company is going to be moving forward in 2021.

The release of a vaccine has only given a cheaper entry point in my view, the re-opening of the economy etc is going to see greater potential sales opportunities.

Zoono attempting to expand into the Chinese market through Alibaba.

Continuing to expand their products globally, Paul & the team are marketing ZNO well.

The next few weeks will be interesting as ZNO chemical treatments/sanitisers are waiting UK regulatory approval. 

https://zoonogh.tmall.hk/search.htm?spm=a1z10.1-b-s.w5001-23047121749.3.1517553eJFB8qU&search=y&scene=taobao_shop

{I Hold}