- Despite a second consecutive drop in its share price, Skin Elements (SKN) maintains it’s unphased by Holista CollTech’s (HCT) supply agreement termination
- HCT notified the market after Friday’s close that it had cancelled its deal with the natural skincare company — a term sheet which saw both companies collaborate to create a natural hand sanitiser
- SKN had already taken a huge hit after its return to trade on Friday, and now its share price has fallen even further
- However, Skin Elements insists it hadn’t defaulted on the terms of the agreement with Holista, and will instead move on to other suppliers to continue sanitiser production
- Additionally, the company says it doesn’t anticipate the termination of the agreement will have a material impact on its operations or production
- Skin Elements fell over 56 per cent on Friday and has shed another 28.57 per cent today to trade at 2.5 cents per share
Despite a second consecutive drop in its share price, Skin Elements (SKN) maintains it’s unphased by Holista CollTech’s (HCT) supply agreement termination.
HCT notified the market after Friday’s close that it had cancelled its deal with the natural skincare company — a term sheet which saw both companies collaborate to create a natural hand sanitiser.
Deal or no deal?
SKN provided a market update on Thursday last week, spruiking a new distribution agreement with Prudential Consultants, trading as Shield Yourself (SHY).
The SHY agreement will see the distributor aim to sell $2.4 million of Skin Elements’ Invisi-Shield hand sanitiser over three years.
In the same release, SKN also said its deal with Holista was ongoing, and that it had taken almost $200,000 in deliveries from HCT.
Shortly thereafter, HCT issued its own release stating it had terminated the agreement, claiming SKN had breached the agreement terms and defaulted on its end of the bargain.
New deal
Skin Elements has been quick to move on from the failed relationship with Holista.
The company now says it had “previously identified alternate providers of the ingredient being supplied by HCT for its natural alcohol-free hand sanitiser Invisi-Shield.”
The company believes the “superior product” supplied by the alternate providers will enable Skin Elements to “strive to achieve higher specifications and in turn potentially fast track its Therapeutic Goods Administration (TGA) approval process.”
However, SKN insists it hadn’t defaulted on the terms of the agreement with Holista, and will instead move on to other suppliers to continue production.
The company says it doesn’t anticipate the termination of the agreement will have a material impact on its operations or production.
Despite the reassurances though, Skin Elements’ share price has continued to tank.
The company fell over 56 per cent on Friday and has shed another 28.57 per cent today to trade at 2.5 cents per share at 10:55 am AEDT.