14 May 2020 07:00
Byotrol plc ("Byotrol" or the "Group")
License Agreements and Update on Trading
Byotrol plc (AIM:BYOT), the specialist infection prevention and control technology company, is pleased to announce two new license agreements and confirmation of continued strong trading.
New License Agreement in the USA with Integrated Resources International LLC
We are pleased to announce that we have agreed a technology license over Byotrol24, our EPA registered long-lasting germ kill sanitiser spray, with a consortium of investors and experienced market professionals under the umbrella of Integrated Resources International LLC, based in Tennessee ("IRI").
The license is 10 years in term and gives exclusive rights over Byotrol 24 and patents that support it in the Americas, subject to certain clawback rights. In return for those rights, IRI has paid to Byotrol an initial license fee of US$250k and will pay a quarterly royalty payment based on product sales (with material minimum annual guaranteed payments) thereafter.
The team behind Integrated Resources is already well-known to the Group, including via its sister company Advanced Hygienics LLC, which is currently licensing a Byotrol formulation of hand sanitisers in the USA. This new agreement immediately injects additional resources and expertise into the sales and marketing effort for Byotrol24, without losing ownership of the brand and the technology. Subsequent to this deal, Byotrol will no longer incur material costs in the US.
New License Agreement with SC Johnson Professional Ltd
Our last trading update included reference to 'a material but delayed new license contract that was eventually closed in mid-April.' Having now completed legal formalities, we are pleased to announce this agreement is a multi-year license agreement with SC Johnson Professional Ltd in alcohol-free hand sanitisers. This represents a strengthening in our existing relationship, moving from a relatively short-dated supply and manufacturing agreement to a longer-term technology license with guaranteed revenues, with no changes to the previously announced market scope.
Current trading
As we start a new financial year, we are pleased to report that sales momentum remains strong. We expect to generate record sales in the first quarter of the year and are optimistic that high levels of demand will continue for the remainder of the first half at least.
Sales in March and April 2020 each exceeded £1m and we are expecting to show similarly strong performance in May. Our order book at the end of April stood at over £2m. The Group's supply chain is working well despite the global shortage of biocidal ingredients, exacerbated by unpredictable national lockdowns and border closures.
David Traynor, Chief Executive of Byotrol, commented:
"We continue to make and supply as much of our excellent technologies as we can and expect the current record level of sales to persist in the short term and potentially beyond.
Our team is now increasingly focused on the longer term, positioning for the post Covid19 world by entering into new agreements that will increase distribution into markets that we could not easily access ourselves and at a speed that we could not achieve ourselves. The agreement with Integrated Resources and the new agreement with SC Johnson Professional Ltd are two such examples and we expect to complete more as the year continues."
Enquiries:
Byotrol plc
David Traynor - Chief Executive Officer
Nic Hellyer - Chief Financial Officer 01925 742 000
finnCap
Geoff Nash/Kate Bannatyne - Corporate Finance 020 7220 0500
Richard Chambers - ECM
Flagstaff Strategic and Investor Communications
Tim Thompson/Andrea Seymour/Fergus Mellon +44 (0)207 129 1474
byotrol@flagstaffcomms.com
This announcement is released by Byotrol plc and, prior to publication, the information contained herein was deemed to constitute inside information under the Market Abuse Regulations (EU) No. 596/2014. Such information is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Notes to Editors:
Byotrol plc (BYOT.L), quoted on AIM, is a specialist infection prevention and control company, operating globally in the Healthcare, Industrial, Food and Consumer sectors, providing low toxicity products with a broad-based and targeted efficacy across all microbial classes; bacteria, viruses (including coronavirus), fungi, moulds, mycobacteria and algae.
Byotrol's products can be used stand-alone or as ingredients within existing products, where they can significantly improve their performance, especially in personal hygiene, domestic and industrial disinfection, odour control, food production and food management.
Byotrol develops and commercialises technologies that create easier, safer and cleaner lives for everyone.
For more information, please go to byotrol.co.uk