Can Holista CollTech Limited address a major concern?

Team Veye | 07 Apr 2020 ASX - HCT
Can Holista CollTech Limited address a major concern?

Holista CollTech Limited (ASX: HCT)

Skin Elements Enters Binding Agreement with Holista Colltech To Launch All-Natural Skin-Friendly Sanitiser

Australian-listed companies Skin Elements Limited (ASX: SKN) (‘Skin Elements’) and Holista Colltech Limited (ASX: HCT) (‘Holista’) on 2 April 2020 announced a Binding Collaboration Term Sheet (Agreement) to launch a natural alcohol-free hand sanitiser that combines Skin Elements’ new skin-sensitive anti-microbial formula with the Path-Away® active ingredient distributed by Holista.

(Chart source: TradingView)

Skin Elements’ Invisi Shield® Natural Hand Sanitiser will hit stores in Australia and New Zealand this month ahead of other global markets as part of an accelerated collaboration between both companies to meet the increased global demand for sanitisers.

The all-natural product will address a major concern faced by the repetitive use of alcohol based sanitisers. Many Australians are increasingly concerned about skin sensitivity due to high alcohol content in sanitisers. Invisi Shield® Natural Hand Sanitiser does not use alcohol.

Holista has exclusive rights to distribute in Australia the Path-Away® sanitiser ingredient developed by Global Infection Control Consultants LLC based in South Carolina in the United States. Holista also sells under the brand Natshield.

As part of the Agreement, Holista will ship Path-Away® as a concentrate to be included in the manufacture of the Invisi Shield® Natural sanitiser. This will be made in Australia by Skin Elements in accordance with the unique dilution recommendations for the Path-Away® concentrate provided by GICC.

The initial order of the Path-Away® ingredient under the Agreement is for a minimum of $600,000 in the first year. Payment terms will be 50% on order and 50% before shipment. The minimum order quantities will be reviewed on a quarterly basis, in order to assess the capacity to increase order quantities as required to meet increased demand. (Data Source – Company Reports)

 

Veye’s Take

Life after COVID-19 will see more use of sanitisers at a personal level. The all-natural product will address a major concern faced by the repetitive use of alcohol-based sanitisers. Many Australians are increasingly concerned about skin sensitivity due to high alcohol content in sanitisers. Invisi Shield® Natural Hand Sanitiser does not use alcohol. Holista had been building momentum on the news of Coronavirus. Its NatShield Sanitizer was created to treat previously known coronaviruses. The stock has formed a rounding bottom sort of pattern. Subsequent price jump on very strong volumes indicates potential for further bullishness. The stock can have the potential of a significant upside if it manages to cross $0.18 with volumes. Veye maintains a "Hold" on “Holista CollTech Limited” at the current price of $ 0.15

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