Zenova Group (ZED ), a fire safety and thermal insulation provider, announced that its sub-distributor Clastrom has placed a first order for 40,000 FX500 aerosol extinguishers with a retail value of of £800k. Clastrom's first delivery of 10,000 units will be supplied by 15 July 2023 to German customers with the rest to follow by the end of 2023.
Zenova is currently in production of the novel FX500 extinguisher in Canada and the UK. The model was introduced in Q4 2022 and is now available for retail and commercial markets, having been tested to BS6165 standards. Zenova says it extinguishes "all fire types at the push of a button", and can operate at -10 C.
The company said it anticipates to increase sales through its overseas sub-distributor channels over the course of the second half of the year.
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Markets cheered today's news from Zenova, pushing ZED shares 5% higher. This initial £800k order from Clastrom for its customers in Germany testifies to the effectiveness of Zenova's previously announced strategy of using sub-distributors to penetrate overseas markets. Sales through the company's sub-contractors are bound to accelerate into H2 2023.
The substantial size of the order relative to Zenova's market cap also speaks to the quality and capabilities of the FX500 extinguisher. The FX500 was first introduced in November 2022 with its first customer the military of Ukraine. Since then, Zenova has received a £300k order for the extinguisher from Amazon UK and an order for 500 units from Big Battery LLC, the US' largest Li-Ion battery supplier. Zenova products have also been specified for several regulated UK projects.
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