Why the Advance NanoTek share price skyrocketed 23% higher today

The Advance NanoTek Ltd (ASX:ANO) share price skyrocketed 23% higher on Wednesday. Here's why…

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The Advance NanoTek Ltd (ASX: ANO) share price has been on fire again on Wednesday.

The advanced materials company's shares rocketed as much as 23% to $5.81 at one stage.

And whilst they gave back a good portion of these gains, its shares still finished the day 13% higher at $5.33.

This means that the Advance Nanotek share price has gain a remarkable 900% since this time last year.

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What is Advance NanoTek?

Advance NanoTek is a developer, manufacturer, and marketer of innovative products based on a range of proprietary advanced material technologies and manufacturing processes.

The company's current commercialised products include metal oxide powders and dispersions of zinc oxide which act as the UV blocker in sunscreens and some cosmetic products.

Why did its shares rocket higher today?

This afternoon the company revealed that it has been holding meetings in Europe and has now finalised a distribution agreement with a new distributor, Eurosyn S.p.A (Italy).

According to the release, the distribution agreement has been signed for an initial term of 12 months. Management anticipates that this will lead to an increase in sales of its products throughout Italy, which is a country that has not been represented by a distributor since the end of 2017.

This will complement commitments from other distributors in Europe representing France, Spain, Portugal, Belgium and Luxembourg.

In addition to this, the release advises that the company is currently negotiating additional agreements with distributors in the United Kingdom and Germany.

In light of the positive progress the company is making on the continent, it anticipates initial sales orders of over $400,000 in Europe during the current quarter. This will be at least 145% greater than the orders received during the same quarter last year for shipment to Europe.

Pleasingly, the company isn't resting on its laurels. Further European partners and contract manufacturers are being approached and the company hopes to make further additions to its European network in the next 12 months.

Other big movers on the market today include Austal Limited (ASX: ASB) and Elders Ltd (ASX: ELD) shares with gains of 11% and 15%, respectively. Austal's shares were boosted by its positive guidance for FY 2020 and Elders rose in response to a major acquisition.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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