SNES: Expanding into SE Asia through a distribution agreement.

By Ian Gilson, PhD, CFA



The company has announced the signing of a distribution agreement with New Enterprises Ltd, an early investor in SenesTech (NASDAQ:SNES).

New Enterprises will cover all costs of regulatory approval and market development as well as importation costs.

This announcement is further confirmation of the potential of ContraPest in controlling rat infestations.

DNA sequencing has proved that the brown rat originated in SE Asia, migrating through the Middle East and into Europe in about 220 AD.

Rats, in general, are major consumer of rice and in return, are a human food source in parts of Asia. It is estimated that over 12% of the rice grown in SE Asia is consumed by rats and as high as 19% in Indonesia.

In our opinion the impact of this agreement, although it is very significant, will not affect earnings in 2020 or 2021.

SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. 

DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $30,000 annually for these services. Full Disclaimer HERE.