Business

SenesTech Inc. (NASDAQ:SNES) Signs Contrapest Distributions Agreements

SenesTech Inc. (NASDAQ:SNES)

SenesTech Inc. (NASDAQ:SNES)

Shares of SenesTech Inc. (NASDAQ:SNES) gained 12.1% after the developer of proprietary technologies for managing rodent populations, announced a distribution agreement with Univar, for ContraPest. In addition to the national distribution agreement, Univar has agreed to sell the product in its network.

SenesTech Inc. (NASDAQ:SNES)

ContraPest Distribution Agreements

Univar is an excellent distribution partner for SenesTech given that it’s extensive breadth and depth coverage in the retail market. The company boasts of direct connection with pest control operators across the U.S., perfect for nationwide coverage.

In addition, SenesTech Inc. (NASDAQ:SNES) has signed a similar distribution agreement with Target Specialty Products for ContraPest. The distributor will also market the patent-protected technology throughout its network.

“Target Specialty Products is an excellent sales and distribution partner for SenesTech, with their direct connection with the pest control operators, with their extensive breadth and depth of coverage throughout the U.S. They will provide us with a more extensive nationwide sales coverage in the pest management sector,” said Dr. Loretta P. Mayer, Chair, and CEO.

SNES Stock Rating

The two distribution agreements appear to have strengthened investors’ confidence in the stock. However, the stock continues to trade in a downtrend after losing more than two-thirds of its market value since the start of the year.

Despite the underperformance, Roth Capital analyst Gerry Sweeney remains optimistic about the company’s long-term prospects. The analyst has initiated coverage of the stock with a ‘Buy’ rating. The analyst also has a price target of $14 a share which implies an upside potential of 413%.

Separately, SenesTech Inc. (NASDAQ:SNES) has announced plans to offer common stock and warrants for the purchase of common stock in a registered public offering. The company intends to use net proceeds from the offering for working capital and general corporate purposes. Part of the funds is to be used for the commercialization of ContraPest.

Q3 Financial results

SenesTech Inc. (NASDAQ:SNES) generated revenue of $17,000 in the third quarter. The company has also signed long-term sales commitments that have the potential to generate over $200,000 with an additional $250,000 of proposals. SenesTech also has pilot programs with total annual sales opportunities of approximately $2.4 million.

Net loss in the third quarter totaled (-$2.9) million or (-$0.28) a share, compared to a net loss of (-$2.7) million or (-$0.37) a share reported last year. SenesTech Inc. (NASDAQ:SNES) exited the quarter with $3.6 million in cash and cash equivalent.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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