COVID-19, Trend Towards Green Cleaning Products Driving Micro-Cap Higher

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Wednesday, August 26, 2020

Not surprisingly, one primary talking point of the U.S. presidential campaigns is COVID-19. This includes Democratic nominee Joe Biden saying in an ABC News interview that if he is elected, he would shut down the economy again if that was the recommendation of scientists. Safe to say, coronavirus and the constant barrage of health recommendations aren’t going anywhere for the foreseeable future.

More broadly, the pandemic has forever changed people’s and businesses’ habits regarding germs and infection prevention. The emphasis on cleanliness and sterilization has resulted in a 195% surge in sales of household cleaners, according to Research and Markets, leaving retail shelves barren of products like Clorox and Lysol. According to Statista, sales of natural cleaning products in the U.S. have spiked 241% from the outset of the pandemic in March.

The sparseness of supply of traditional household brands is fueling the already accelerating trend towards environmentally friendly cleaning products. This dovetails with an existing movement by millennials to avoid big brands in favor of smaller brands that they better identify with. Albeit an unconventional way to create consumer loyalty, shelves being picked clean of famous brands due to COVID-19 is creating brand awareness for alternatives, which may see users never go back to non-green products.

This trend towards so-called green disinfectants plays right into the hands of upstart tech accelerator SoftLab9 Technologies Inc. (CSE:SOFT) (OTCPK:SOFSF), a company in the midst of acquiring the CleanGo GreenGo brand. Dubbed “Literally magic in a bottle” in videos demonstrating the extreme cleaning power of its proprietary emulsification technology, the CleanGo GreenGo lineup consist of a suite of non-toxic, biodegradable cleaning products for industrial, commercial and consumer markets.

The company also has a hand sanitizer that has been deemed by Health Canada as appropriate for use against COVID-19. Moving into hand sanitizer resulted in a $3.75 million purchase order for the gel from Colorado-based PPE procurement company SIGRA, LLC in June.

August has been a strong month for CleanGo GreenGo as it deepens its footprint in the burgeoning green cleaning goods market, as well as the COVID-19 space.

For starters, the company struck a new agreement with CBIO Brand Distribution International Inc., a wholly owned subsidiary of Brand X Lifestyle Corp. (CSE: BXXX), to supply bulk concentrate material for CBIO's SaniGenix™ Naturals line of hard surface disinfectants and sanitizers.

“Having CleanGo GreenGo as our strategic supplier for SaniGenix Naturals adds yet another unique and high performing CPG product to CBIO's suite of brands,” commented Lisa Little, President and CEO of CBIO Brand Distribution, in a news release on the new partnership.

CleanGo GreenGo also this month received all the necessary equipment to begin fogging services in any commercial, residential or large areas requiring sanitization. The company provides customers peace of mind by validating the fogging process in real time using ATP (Adenosine Triphosphate) bacteria detection meters to measure the thoroughness of disinfection.

“It is with good reason that companies like Delta Airlines are employing fogging procedures between flights, as it is one of the most robust means to ensure that every inch of a space is thoroughly disinfected,” said Rahim Mohamed, CEO of SoftLab9, in a phone conversation with AllPennyStocks.com. “We foresee fogging as becoming a cleaning staple in the war against germs in countless applications, particularly the office, retail, restaurant and hospitality industries. We wanted to make sure that we are in front of this changing market landscape.”

The strategy for rapid roll-out of the service is to forge local partnerships and deliver a turnkey business solution with profit sharing revenue model, adding another revenue stream in a growing market while containing cost of sales.

Investors of SOFT have enjoyed strong gains since announcing its agreement to acquire CleanGo GreenGo at the start of June, with shares more than doubling following the acquisition news.

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