Skin Elements Enters Agreement With Holista Colltech To Launch All Natural Skin-Friendly Sanitiser
Australian-listed companies Skin Elements Limited (ASX: SKN) ('Skin Elements') and Holista Colltech Limited (ASX:HCT) ('Holista') announced today a Binding Collaboration Term Sheet (Agreement) to launch a natural alcohol-free hand sanitiser that combines Skin Elements' new skin-sensitive anti-microbial formula with the Path-Away(R) active ingredient distributed by Holista.
Skin Elements is leveraging on its research into skincare formulas which has already achieved global market recognition. This will make the Invisi Shield(R) Natural Hand Sanitiser a world-first in combining advanced natural skincare formulations with the Path-Away(R) active ingredient.
Skin Elements' Invisi Shield(R) Natural Hand Sanitiser will hit stores in Australia and New Zealand this month ahead of other global markets as part of an accelerated collaboration between both companies to meet the increased global demand for sanitizers.
The all natural product will address a major concern faced by the repetitive use of alcohol based sanitisers. Many Australians are increasingly concerned about skin sensitivity due to high alcohol content in sanitisers. Invisi Shield(R) Natural Hand Sanitiser does not use alcohol.
Skin Elements' Invisi Shield(R) Natural Hand Sanitiser is a plant based formula incorporating the Path-Away(R) active ingredient. The Invisi Shield(R) Natural Hand Sanitiser is currently being formulated by Skin Elements using third party independent test results on ingredients. Once this product has been finalised the assessment of applicable regulatory framework and further appropriate independent laboratory testing will be undertaken as required.
The Invisi Shield(R) Natural Hand Sanitiser is not required to be registered by the Therapeutic Goods Administration (TGA) as it is deemed personal cosmetics products which comply with the Therapeutic Goods (Excluded Goods) Determination 2018.
The Path-Away(R) active ingredients are listed as Generally Recognised as Safe (GRAS) under the Code of Federal Regulations and Federal Drug Administration (FDA) and have been successfully tested at several laboratories approved by the World Health Organisation.
Holista has exclusive rights to distribute in Australia the Path-Away(R) sanitiser ingredient developed by Global Infection Control Consultants LLC based in South Carolina in the United States. Holista also sells under the brand Natshield.
Skin Elements has the capacity to initially produce up to 20,000 100ml bottles Invisi Shield(R) Natural in the first month at its West Perth facility, and will review quarterly its capacity to assess if additional contract facilities are required to increase production to meet increased future demand.
As part of the Agreement, Holista will ship Path-Away(R) as a concentrate to be included in the manufacture of the Invisi Shield(R) Natural sanitizer. This will be made in Australia by Skin Elements in accordance with the unique dilution recommendations for the Path-Away(R) concentrate provided by GICC. Skin Elements will allow its production outputs to be independently verified by competent auditors of HCT, or as the case may be, by GICC.
The initial order of the Path-Away(R) ingredient under the Agreement is for a minimum of $600,000 in the first year. Payment terms will be 50% on order and 50% before shipment. The minimum order quantities will be reviewed on a quarterly basis, in order to assess capacity to increase order quantities as required to meet increased demand.
It will be available in Australia and New Zealand through its network of four distributors which service in excess of 10,000 retail outlets. It intends to introduce other bottle sizes for handheld or table-top use and can increase production to meet demand in Australia and New Zealand and from the global markets.
"We are excited by the collaboration with Holista and the launch of Invisi Shield(R) Natural which will position Skin Elements as a global leader in providing high-quality hand sanitisers. This new sanitiser significantly strengthens our range of existing sanitisers which is being unveiled after two years of product development and test marketing to independent pharmacies, and selected schools and day-care centres in Western Australia," said Skin Elements' Executive Chairman Peter Malone.
"It extends Skin Elements' portfolio of award-winning nature-based healthcare and skincare products researched and developed over the past 20 years. These include the Soleo Organics sunscreen, which has won multiple awards as the world's best natural sunscreen, including being rated the number one natural sunscreen by the Environmental Working Group of the United States, PapayaActivs natural therapeutic skincare, and the Elizabeth Jane Natural Cosmetics brand," he added.
"Our partnership with Skin Elements places Australia on the global map in terms of innovation. The inclusion of Path-Away(R) combines trusted skincare solutions developed by Skin Elements with a powerful active ingredient that has been tested as a sanitiser. Life after COVID-19 will see more use of sanitsers at a personal level and I am happy to see two Australian companies take the message of "all natural and "alcohol free" to the world as an alternative to alcohol," said Dr Rajen Manicka, CEO of Holista.
This announcement is authorised by the Board of Directors of Skin Elements Limited and the Board of Directors of Holista Colltech Limited.