Shares of PURE Bioscience (OTCBB: PURE) jumped up today after news about its distribution agreement with Swabplus came out earlier this morning. In early trading today, PURE was up 17 cents (5 percent) to $3.47 per share.
PURE announced in a press release that it has granted a license to market and sell its patented silver dihydrogen citrate (SDC)-based hard surface disinfectant in China, Hong Kong and Taiwan to privately held Swabplus Inc.
“We are excited about the opportunity to introduce SDC into Asia as a more effective alternative to traditional poisonous disinfectants and a powerful weapon against dangerous pathogens including avian flu, SARS, MRSA and norovirus or norwalk virus,” said Garry Tsaur – president of Swabplus – in a statement.
Under the terms of the agreement, PURE will sell SDC concentrate to Swabplus for blending, packaging and distribution of the SDC-based disinfectant product. Swabplus has dedicated approximately 70,000 square feet of its 300,000 square foot state-of-the-art manufacturing facility in San Dong Province in China to the blending and packaging of SDC-based disinfectant.
In addition, Swabplus will assume compliance responsibility for all regulatory and legal requirements by national, state and local governments.
“Swabplus has been an investor in PURE for many years, and we are pleased to expand the relationship to include distribution of an SDC-based disinfectant in Asia,” said Michael L. Krall – president and CEO of PURE – in a statement. “Mr. Tsaur and his partners have demonstrated excellent business and government connections in Asia, and after visiting the plant in China, I am impressed with the quality and sophistication of Swabplus’ facilities in both the U.S. and abroad. Our agreement provides for increasing minimum purchases beginning in 2008 and we expect to begin filling initial orders for Swabplus by the end of 2007.”
PURE Bioscience engages in the development, manufacture and marketing of technology-based bioscience products providing nontoxic antimicrobial solutions. It primarily offers silver dihydrogen citrate-based antimicrobials and boric acid-based pesticides. The company also provides Axen and Axen 30 hard surface disinfectant products for commercial, industrial and consumer applications, including restaurants, homes and medical facilities.
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