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.
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