Micro Cap Lining Up Several New Revenue Streams, Shares Enjoy Spectacular 2020 Gains

Sponsored:

Wednesday, September 2, 2020

Apparently, nobody in government expects COVID-19 to go anywhere anytime soon. The U.S. has struck a deal to buy a minimum of 100 million doses of an experimental vaccine of Moderna (NASDAQ:MRNA) that is currently in phase 3 clinical trials. On Monday, it was disclosed that the Canadian government reached an agreement in principle with Novavax (NASDAQ:NVAX) to buy 76 million doses of its experimental vaccine, which is still in phase 2 clinical trials.

Once a vaccine finally completes clinical trials and gets regulatory approval, there is no guarantee that is the solution either. In fact, depending on which poll you choose to listen to, between 35%-50% of Americans say they will refuse to take a new COVID-19 vaccine. Rather than take a vaccine without long-term safety data, many in the population will continue with best practices to limit exposure to COVID-19.

That means long-term demand for personal protection equipment (PPE), disinfectants and other anti-viral-related products.

“Unlike its prior coronavirus relatives SARS and MERS, COVID-19 has elicited a holistic transformation in how people live and businesses operate,” commented Rahim Mohamed, CEO of Softlab9 Technologies Inc. (CSE:SOFT) (OTCPK:SOFSF) in a conversation with AllPennyStocks.com. “Sanitization and disinfection practices are now – and likely forever will be – the mainstay and part of our everyday lives.”

Softlab9, an incubator and accelerator of upstart companies in the process of acquiring the CleanGo GreenGo brand and family of environmentally-friendly cleaning products, has been expanding its portfolio to address this trend shift and market opportunity. CleanGo GreenGo is an FDA and Health Canada approved manufacturer of non-toxic and biodegradable products that have been tested to kill the human coronavirus.

With the outset of the COVID-19 pandemic in 2020, the company launched a hand sanitizer gel throughout the U.S. and Canada. In August, CleanGo GreenGo received all the necessary equipment to begin disinfectant fogging services for commercial, residential and industrial applications.

The company is not relenting in its growth initiatives, adding distribution deals for a portfolio of COVID-19 rapid test kits and PPE to its product bag.

Per a new agreement with Australia’s Emergence Technology PTY LTD, Softlab9 with have exclusive sub-distribution rights for five different diagnostics testing for SARS-CoV-2, the coronavirus responsible for COVID-19. Each test kit is made by a different manufacturer in China and several have different functionality, giving Softlab9 some flexibility to meet demand of customers. Whether blood-based or saliva-based, testing for antigens of antibodies or the world’s gold standard of RT-PCR (Reverse Transcription Polymerase Chain Reaction) testing, all the kits quickly provide results with a high degree of reliability.

Per a letter of intent covering the test kits, Softlab9 will initially buy 5,000 kits (1,000 of each) to test the market’s temperature for demand. Upon meeting certain milestones, SoftLab9 will earn exclusivity in certain markets. All of the agreements cover the U.S., Italy, Spain and Portugal, with two expanding the coverage to all of North America and two others including the Caribbean.

The plan is for a definitive agreement setting the deal in motion and procurement of the test kits by the end of September.

A separate deal with HEG, S. de C.V., a Mexico-based manufacturer of PPE, allows Softlab9 to exclusively distribute HEG products, namely surgical masks, isolation gown and coveralls throughout the U.S. and Canada. The partnership, which will see all profits split 50/50, was recently kicked off with Softlab9 receiving 100 each of Level II and Level III coveralls and gowns to provide to Health Canada and/or the U.S. Food and Drug Administration for testing and approval as certified PPE.

The masks are standard 3-ply or 4-ply disposable masks that are not subject to regulatory approvals.

Sales exclusivity in Canada and the U.S. is triggered for Softlab9 immediately upon Health Canada and FDA approvals.

A definitive agreement protecting the agreement is expected within 30 days.

"Our partnership with HEG means we will have the ability to distribute 300,000 isolation gowns on a weekly basis as well as 1,000,000 of the surgical masks weekly and expect to increase capacity monthly,” commented Mr. Mohamed in the news release on the newest potential revenue stream.

He added, “With the current pandemic changing the way we live; this will help our communities in sourcing the equipment it needs."

Armed with a stable of powerful cleaning products that could make CleanGo GreenGo a household name for cleaning by emulsification just like OxiClean did for oxidation, SoftLab9 is becoming a strong corporate diversification play, something many wouldn’t expect from a company with a market capitalization of under $15 million.

Sponsored: