RE: Research note21 Mar 2020 10:54
I guess we need to clarify issues around the Coronavirus and SKIN (and also MWG).
Labskin (12 years) is an (animal-free) skin testing platform that can host bacteria, virus and toxins. Modern Water monitoring (28 years old and bought by MWG parent in 2011 for $4.5m) use consumables that are used by MW equipment to detect bacteria, virus and toxins. So the common denominator for both companies is bacteria, virus and toxins.
SKIN have amassed a client portfolio of global top 10/20 skincare, cosmetic and healthcare companies who have entered into framework agreements that extend over multiple years and engage monthly in a variety of product, ingredient and data analytics derived from physical and virtual diseased and healthy skin models using our AI platform. Purchase orders from each company are in the mid to high 5-figure range and are multiple, so many clients are already 6-figure clients and likely to rise through the term of their framework agreement with us.
MWG is a tried and trusted water monitoring platform that has recurring revenues from consumables that test for bacteria, virus and toxins in all sources of water. Over the last 28 years, this reliable platform has reached a standard such that 6 countries have legislation that requires the use of MWG equipment and supplies. 80% of that is recurring revenues, year-in and year-out.
The MWG parent business model failure is well documented in many, many companies with great technology. It was trying to perfect technology at the expense of building out sales, marketing, design, build, install and support for a new technology that could decontaminate bacteria, virus and toxins in very large wastewater outlets. Unfortunately, the water monitoring division was never fully integrated into the parent and so productivity reduced over the last 8 years.
So much potential underexploited in a single company, rather than collaborating, cooperating, partnering, joint venturing for co-development on large projects. The network of MW monitoring subsidiary where trust, reliability, knowledge, even environmental protection legislation in multiple countries was never fully realised and no attempt to deliver on the value-added technology that exists for decontaminating water that is being monitored by MW equipment and consumables.
Here we are in the midst of an unprecedented global pandemic, where weak and vulnerable people are at risk. Water contamination is critical to peoples health, so it is inevitable that demand for MW monitoring equipment and consumables have shot up and backlog runs at the level it is at, because exising and new clients need to have their water supplies tested to keep everyone healthy.
Now, enter SKIN, with expertise, experience and knowledge of bacteria, virus and toxins, with state of the art laboratories, growing at a rapid pace and add MWG backlog to Cellulac's chemical industrial reach and SKIN's transformational management. That is why Board members are bu
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