An international biotech company, Zoono Group Limited (ASX: ZNO) announced that, further to the legal proceedings filed in the Auckland High Court by Zoono against MCS Capital Partners Pty Limited and Stayzon Retail Ventures Pty Limited (“Stayzon”) for breach of the Deed of Settlement pursuant to which Zoono and Stayzon ended their supply agreement in March 2018 (as announced on 3 December 2018), Stayzon has now filed a counterclaim against Zoono.
Zoono held the opinion that Stayzon had indulged in, making wrong and false statements in the market and sale of Stayzon products.
The counterclaim is for AUD$790,000 plus disgorgement of any benefits Zoono received from Stayzon/MCS entering the Settlement Deed and costs.
Zoono thinks that the counterclaim was without merit. It would strenuously pursue its claim against Stayzon/MCS. Zoono is confident of its legal position and would keep the market updated on further proceedings.
On 11 February 2019, ZNO announced that its Z-71 Surface Sanitiser had passed the notoriously challenging BSI PAS 2424:2014 Quantitative Surface Test. The Test evaluated the residual antimicrobial (bacterial and/or yeasticidal) efficacy of liquid chemical disinfectants on hard non-porous surfaces. It is considered the ultimate test of a product’s ability to remain on a surface and maintain an antimicrobial protecting shield for 24 hours or more. Passing the Test once more demonstrated the significant advantage Zoono had over other products and validated Zoono’s ability to be able to deliver the efficacy results demanded by multinational companies worldwide.
Zoono was in advanced negotiations with several multinational companies in the UK and EU. This result provided the Company with enormous credibility and assistance with the on-going contract negotiations at that time.
On 21 January 2019, ZNO provided an overview of its activities for the quarter ended 31 December 2018 (Q2FY19). Global online sales continued to increase as brand awareness grew and the monthly product subscriptions for businesses continued to improve. The successful product trials resulted in more orders in the USA. The company was featured on morning television in Canada in conjunction with the launch of an online store. It underwent successful product testing and commenced franchise launches and sales in the UK. China sales resulted in approximately $180k for the quarter. The company had been receiving strong interest from the Middle East and India which continued to show great potential as new markets. It was approved as a ‘FOCUS700 company’ by New Zealand Trade and Enterprise who were assisting in global expansion and business development support. It received an initial deposit of NZ$375,000 from the new Dubai distributor, Sky Scrapers General Trading LLC.
The net cash used in operating activities was NZ$414,000 in the December quarter, which was an improvement over the previous quarter by NZ$682,000, despite the costs of running the UK operations. Customer receipts for the quarter were NZ$617,000, an improvement of NZ$491,000 for the quarter. At the end of the quarter, the Company had NZ$4.5m cash at bank plus NZ$673,000 in stock, including NZ$238,000 of stock held in the UK warehouse.
At the end of the trading session on 12 February 2019, the stock of the company traded at A$0.130, up by 41.304% or 0.038 points.
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