Zoono Group Limited responds to ASX's Query Letter

Zoono Group Limited (ASX: $ZNO) has responded to ASX's Query Letter dated 25 March 2024, addressing key points including the Renegotiated Agreement with Zoono USA LLC, the Exclusive Agency Agreement with OSY Group Limited, and the company's financial position as at 31 December 2023.

Executive Commentary on Renegotiated Agreement and Exclusive Agency Agreement

The company has renegotiated the agreement with Zoono USA LLC, reducing the consideration payable to US$910,000 and a 10% royalty charge on future sales. Additionally, Zoono Group Limited has entered into an Exclusive Agency Agreement with OSY Group Limited to promote the sale of Zoono products for the food supply chain sector, with plans to issue 1,000,000 shares after the first customer payment of NZ$1.25m is received.

Summary of ASX Announcement and Outlook

Zoono Group Limited has provided detailed responses to ASX's Query Letter, confirming the renegotiated agreement with Zoono USA LLC and the Exclusive Agency Agreement with OSY Group Limited. The company's financial position as at 31 December 2023, including a net loss after tax, decreased operating revenue, impairments, and stock obsolescence, has been addressed. Zoono Group Limited is undertaking a rights issue to raise up to $2.9M and expects to be profitable in FY25, with plans to supply its products into the food supply chain sector in the UK and other sectors in China and India.