Sonoma Pharmaceuticals (NASDAQ:SNOA) stock is rocketing higher on Wednesday following positive news for its Microcyn Rx products.
The big news here is Sonoma Pharmaceuticals getting a Distribution and Pricing Agreement (DAPA) from the Defense Logistics Agency (DLA). This allows SNOA partner EMC Pharma to reach distribution agreements for Microcyn Rx products with federal customers.
Investors will note that roughly half of EMC Pharma’s customers are U.S. government entities. Also, the U.S. government is the largest purchaser of goods and services in the world. This opens Microcyn Rx products up to “VA hospitals, the Department of Defense, the Federal Bureau of Prisons, as well as state and local prison systems.”
Eric Bailey, president and CEO of Sonoma Pharmaceuticals, said the following about the news:
‘This is a major step that will allow us to sell Microcyn technology products into the federal supply chain. We have already seen interest from federal networks for these products and are excited to use our experience working with federal customers to distribute Microcyn.”
What This Means for SNOA Stock
Gaining the ability to sign a distribution agreement with the U.S. government is a major win for Sonoma Pharmaceuticals. It opens it up to increased revenue from its Microcyn Rx products, which could be a positive catalyst for SNOA stock.
Investors are already celebrating the news with heavy trading of the shares. This has some 14 million shares of the stock on the move as of this writing. For perspective, the company’s daily average trading volume is about 775,000 shares.
SNOA stock is up 70% as of Wednesday morning.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the most recent stock market news for Wednesday! Among that is what has shares of Grom Social Enterprises (NASDAQ:GROM), Waitr (NASDAQ:ASAP), and Esports Entertainment (NASDAQ:GMBL) stock moving today. You can catch up on that at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.