Nanoveu Limited (ASX:NVU) has entered into a 12-month exclusive agreement with Touch Guard Pty Ltd for the distribution of Nanoveu’s antiviral products, including Nanoshield products, in the Australian and New Zealand markets.
The agreement with Touch Guard, a wholly-owned subsidiary of Melbourne-based private investment company Jaszac Investments, is effective immediately and incentivises sales with a US$1 million purchase order target for the distributor to maintain exclusivity.
Significant achievement
Nanoveu executive chairman and chief executive officer Alfred Chong said: “Nanoveu’s antiviral products continue to attract high-quality distribution customers, seeing our capacity to reach new markets further strengthen.
“The agreement with Touch Guard is a significant achievement for the company with our unique antiviral technology being more available in Australia and, for the first time, actively promoted in New Zealand.”
Roll out as quickly as possible
Jaszac investment managing director Jason Sourasis said: “Jaszac was an early-stage investor in Nanoveu.
“With the successful passing of lab testing and associated regulatory checklist from around the globe, it made sense for us to roll this technology out in Australia and New Zealand as quickly as possible.”
Distribution deal
Nanoveu granted the discretion to extend the exclusivity period through two further term options, each for a period of 36 months as long as Touch Guard achieves minimum purchases of US$1 million during the first 12 months.
Under the terms of the agreement, Nanoveu will supply product to Touch Guard on consignment.
Nanoveu will be responsible for the shipment and supply of product to Touch Guard facilities and will offer Touch Guard a royalty-free, irrevocable licence to utilise Nanoveu branding to market the product.
The agreement will see Touch Guard distribute a wide range of Nanoveu’s Nanoshield antiviral products, ranging from business-to-business commercial rolls to retail phone cases and screen covers (excluding 2/3 distribution via Nanoveu’s Customskins vending machines), as well as door handle covers, medical PPE face shields and other applications of Nanoshield.
Significant distribution expansion
While Nanoveu has distributed to Australia previously, the company believes the agreement marks a significant expansion of distribution capabilities throughout the country.
The agreement also facilitates distribution to New Zealand, opening up a new market which the company has not previously targeted for product distribution.
NVU shares have been as much as 20% higher to 6.6 cents intra-day.
Antiviral technology
Nanoveu’s antiviral technology has been independently demonstrated to be a highly effective agent for the eradication of viruses.
The technology has been proven to eliminate 99.99% of OC43, a viral strain affecting humans that is also a surrogate for COVID-19, in 30 minutes.
This antiviral protection has also been validated against other bacteria and viruses, including e.Coli, Influenza A (subtype H3N2), and coronavirus MHV-A592.
Strong distribution presence
Through Jaszac, Touch Guard holds a strong distribution presence across Australia.
Jaszac operates a diverse portfolio in international and Australian markets, holding interests ranging from consumer goods and distribution business to an A-League soccer club, as well as a number of hospitality and property ventures.
Jaszac established Touch Guard to better connect Australian businesses seeking viral protection with providers of novel antivirus solutions.