The Universal Biosensors, Inc (ASX: UBI) share price is rising today, after good news from the company. It has entered into a distribution agreement with Chilean quality diagnostics, control and research company Singularity SpA.
The agreement will see Universal Biosensors' wine testing platform device distributed in Chile for the first time.
Today's news may herald another big day for the Universal Biosensors share price. It launched 9.6% higher yesterday following news the company made deals with Deakin University and the Swinburne University of Technology.
At the time of writing, the Universal Biosensors share price is 73 cents, up 6.6% from yesterday's closing price.
Let's look closer at today's release from the company.
Image source: Getty Images
Cheers for Chilean wine testing
The distribution agreement with Singularity for Universal Biosensors' wine testing platform device, Sentia, is for a 3-year term.
It will make Sentia available in Chile, the world's 8th largest wine-producing country.
The Sentia analyzer is a handheld device that can measure the free sulphur dioxide in post-fermentation red and white wine in under a minute.
Universal Biosensors is working towards making more wine analysis tests available on the device.
Commentary from management
Universal Biosensors CEO John Sharman welcomed the agreement, saying:
The launch of Sentia into Chile is another positive step in the commercialisation of Sentia globally. Chile is the 8th largest wine producing country in the world and Singularity is part of a leading group with diverse expertise in point-of-use devices with connections across Chile's 200,000 hectares of vineyards.
The deal includes an initial commitment to purchase Sentia devices and strips which will be delivered over the course of the next few weeks.
Mr Sharman said the possibility of Sentia's future testing capability for glucose, fructose, malic acid and others would "add significant value" to the winemaking industry.
We are negotiating terms with a number of key industry players around the world and look forward to reporting additional distribution partnerships in due course.
Universal Biosensors share price snapshot
The Universal Biosensors share price has performed well on the ASX lately, with today's news bringing the latest boost.
It is currently up 51% year to date and has increased by a mammoth 294% over the past 12 months.
Universal Biosensors has a market capitalisation of around $120 million, with approximately 177 million shares outstanding.
