Coronavirus concerns are back at a fever pitch with daily reminders about the invisible threat coming from every direction. The U.S. presidential election and news reports provide daily fodder about rising case numbers, higher diagnosis rates and more deaths resulting in a fresh new set of lockdowns being implemented across the world. Anyone that was hoping for a re-opening story for the holiday season may need to change their expectations.
Spain, Germany, The U.K., France and many other European countries are witnessing a spike in cases, and nearly every continental U.S. state is being characterized as either “uncontrolled spread” or “trending poorly,” despite mandates, like in the 33 states that have mask regulations, trying toslow transmission.
While it does appear likely that a vaccine is on the horizon, the end of the Covid-19 influenced change to our lifestyle and hygiene look permanent. It is widely accepted that the pandemic will have a lasting effect on daily practices to avoid viruses and bacteria that are becoming increasingly stubborn and deadly.
“Covid-19 taught the world a lot of hard lessons, including the importance of maintaining a full inventory of PPE and the value of a robust local supply chain,” said Rahim Mohamed, CEO of SoftLab9 (CSE:SOFT; OTC:SOFSF), an incubator of early staged companies, in a phone call with Baystreet.ca.
By PPE, the SoftLab9 chief is referring to “personal protective equipment,” everything from latex gloves to masks and gowns and hand sanitizer that help protect against contraction and spread of pathogens.
“I’m not saying we’re heading for a Demolition Man-type world where physical greetings are abolished,” Mohamed quipped, “But, I think people and organizations are going to be better prepared in the future.”
To that end, SoftLab9 has put its recent focus on all-things anti-coronavirus, including establishing new relationships for rapid tests, PPE manufacturing and distribution. These initiatives are a solid vertical to the company’s ongoing acquisition of CleanGo GreenGo, an FDA and Health Canada approved manufacturer and supplier of a non-toxic and biodegradable suite of cleaning products for industrial, commercial and consumer markets.
As it happens, the active ingredient in CleanGo GreenGo was tested by the US EPA in 2015 and found effective on a hard surface against viruses and bacteria including the Human Coronavirus, which underscores the product being used in a fogging process to rapidly sanitize taxi cabs in Canada.
Executing the PPE Plan
SoftLab9 isn’t wasting any time planting its flag in the PPE space, signing several significant agreements recently. First, a deal was forged with Mexico-based HEG, S. de C.V. to distribute PPE, including surgical masks, Level II, Level III and Level IV isolation gowns and coveralls across the USA and Canada.
This month, the signing of a letter of intent by SoftLab9 to acquire Kosan Medical Company Ltd., a provider of medical grade PPE represented an immediate value add accompanied by significant revenue implications for Softlab9. The agreement brings a turnkey PPE business under the SoftLab9 umbrella, including technology and machinery used to produce masks and gowns at a facility in Vancouver, British Columbia, as well an established network of global PPE suppliers and manufacturing partners, many of which produce FDA-certified goods. SoftLab9 acquires all existing mask and equipment supplies and inventory as part of the buyout, giving the company a jumpstart into the federal and local markets ahead of the winter cold and flu season.
Items in stock include N95 surgical masks (the crème de la crème in the mask world), face shields, disinfectant wipes, hand sanitizer and reusable protective masks. Only days after announcing the intentions to merge, SoftLab9 said it is expanding its product portfolio to include sales of personal protective gowns and coveralls in Canada.
Another significant value add from the agreement with Kosan is the acquisition of Kosan’s existing medical device establishment license registered with Health Canada. SoftLab9 is applying for a similar license under its own moniker, but now has the ability to enter them into market immediately. Ultimately, the plan is to have all Kosan and SoftLab9 products approved by – or meeting the gold standards of – Health Canada.
"Through this potential acquisition, we are adding three critical elements to the company: tested and available PPE inventory, a strong, reliable new supply chain and Canadian based production capabilities of PPE products,” said Mohamed in a statement on the acquisition.
Rapid Covid-19 Test Kits Too
SoftLab9 is in late stage negotiations to be the exclusive distributor of five different types of Covid-19 rapid tests through a partnership with Australia-based Emergence Technology. The company is methodically moving forward as it looks to get a piece of the booming global market for Covid-19 rapid test kits forecast by The Business Research Company to reach nearly $14.94 billion in 2020.
SoftLab9 has already purchased 1,000 of the Orient Gene Antigen Test kits, which are presently going through the Canadian customs process, after which they will be evaluated by SoftLab9 before finalizing the agreement.
Should all agreements be completed in the near term, SoftLab9 will have built a leading player in the PPE space at a blistering pace, all the while buttoning up the acquisition of CleanGo GreenGo, which has been likened to a new iteration of the blockbuster all natural cleaner OxiClean.
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