Foot odor isn’t exactly a pleasant topic for conversation, but with about 250,000 sweat glands in our feet producing a pint of moisture every day, it’s something that many people of all ages deal with daily.
It’s pretty simple science, as shoes are an optimal environment for bacteria to grow, so mix moisture with bacteria and a foul smell is the outcome. While not something you hear talked about on Wall Street very often, but it certainly matters to Genius Brands International, Inc. (OTCQB:GNUS) and its wholly owned subsidiary A Squared Entertainment.
It’s also part of an initiative of Wolverine Worldwide (NYSE:WWW), which, along with its Stride Rite children’s shoes brand, signed a national licensing agreement to use Celessence Technologies’ micro-encapsulation fragrance technology to provide a long-lasting, fresh smell to children’s shoes.
Based in the United Kingdom, Celessence manufactures a diverse range of micro-encapsulates for the textile and print industries. They have recently launched an extensive licensing program in the
U.S. in a bid to expand their global footprint.
A Squared Entertainment is the licensing agent for Celessence, which puts this new partnership in the camp of Genius Brands, a holding company probably mostly widely known for its multimedia content for kids. Celessence micro-encapsulation technology uses a proprietary binder for a controlled release of a fresh scent that is activated through touch, friction or motion.
Genius brands touts that, in many cases, the benefits can last the life of the product and that there is a wide range of possible applications, such as clothes, home goods and durable materials.
Stride Rite’s new line of Celessence "fresh-scent infused" children’s shoes will be presented as "anti-stink" technology. They are expected to debut in stores nationwide as part of Stride Rite’s spring 2016 Made 2 Play sandal collection.
"We're always looking for innovative ways to blend style and substance. Celessence will allow us to offer yet another solution for mom. By adding tiny Celessence micro-capsules to our linings, sandals will stay fresh smelling through an entire summer of play," commented Gillian Meek, Stride Rite’s Vice President of product and brand, in today’s news release.
This news comes not long after an October 14 announcement that Genius and its subsidiary finalized a global licensing agreement with Build-A-Bear Workshop (NYSE:BBW) and a North American agreement with Kittrich Corp. Utilizing the Celessence technology, Build-A-Bear plans to introduce a line of scented bears, including strawberry, chocolate and cupcake, as well as scented apparel and accessories for its bears.
The bears are expected to be out by Valentine’s Day in 2016 and will be available in about 400 locations in the U.S. and abroad.
No details or insights on what the new partnerships can mean to the top and bottom lines at Genius Brands have been disclosed. Normally striking deals with household, NYSE-listed companies results in a surge in a stock, but the limited information may have muted market reaction.
Shares actually closed lower on October 14 and are flat on Wednesday with about two hours left in the trading day on volume of 9,300.
Shares have languished since printing a 2015 high of $3.35 in May. At 95 cents per share, with 6,529,450 shares outstanding (per QuoteMedia), the company has a market capitalization of $6.2 million.
