Zoono Group Limited (ASX: ZNO) announced that Stayzon Retail Ventures Pty Limited has been placed into Voluntary Liquidation by its Directors, Shaun David Bell, and Christopher Plastow.
As previously stated, Zoono instigated legal action against Stayzon Retail Ventures Pty Limited (“Stayzon”) and MCS Capital Partners Pty Ltd. for breach of the deed of settlement. In response a counterclaim was filed by Stayzon for AUD$0.79 Mn plus disgorgement of any monetary & non-monetary benefits, Zoono received from Stayzon/MCS entering the Settlement Deed and costs. Zoono described the counter-claim merit is questionable.
With Stayzon’s Directors having now placed that the company is into a voluntary liquidation, Zoono will pursue its course of action in respect of the proceedings after seeking advice with the liquidator.
As Zoono’s primary purpose in bringing the proceedings was to force Stayzon to stop engaging in conduct which is believed to be misleading and deceptive in the context of Zoono’s products and trade claims, it is unlikely Zoono will further pursue its claims for damages in light of Stayzon’s liquidation.
Apart from its costs to date, other than as noted above, Zoono does not expect the liquidation of Stayzon to have any financial impact on it.
In the previous update, Zoono posted its half-yearly report where it reported a decrease in its revenue from ordinary activities by 64% pcp to NZ$702,572 in H1FY2019 due to lack of orders from the distributors. Its gross profit decreased by 80.2% pcp to NZ$287,233 resultantly from an increase in freight costs transferring stock to the United Kingdom and transferring stock back from China, external storage costs and an increase in employee costs with the hire of new staff for New Zealand, the United Kingdom, and Australia. Its net profit after tax decreased by 285% pcp to (1,377,645) in H1FY2019.
Due to poor top-line and bottom-line performance, the board of the company decided not to dispense any interim dividend for the period H1FY2019.
New Zealand headquartered, global biotech company, Zoono Group manufactures, develops and distributes a suite of long-lasting, environmentally-friendly, scientifically-validated and antimicrobial solutions. It stands for its aim to improve the health and well-being of people by providing safe, innovative, non-toxic and durable germ protection solutions.
‘Zoono molecule’ which is a unique antimicrobial molecule kills pathogens including viruses, bacteria, algae, mould, and fungi by bonding to any surface. It has received all the requisite regulatory approvals based on independent testing in laboratories worldwide.
Recently, it’s surface sanitizer passed the BSI PAS 2424:2014 Test and the result once more demonstrates the efficacy of Zoono’s technology and the advantage of Zoono over other products. It is in negotiations with several multinational companies to bolster its credibility in the global market.
At the time of writing (ASX: 1:19 PM on March 8, 2019), Zoono Group’s share is trading at $0.083 with the market capitalization of ~$13.53 Mn. As per ASX, its loss per share was noted at 0.012 AUD. Its 52 weeks high has been noted at $0.3 and 52 weeks low at $0.067. Its absolute return for 6 months, 1 year, and 5 years are 18.57%, -70.36%, and -88.93% respectively.
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