Simavita surges 480pc after gaining CE approval for its nappy tech
Health & Biotech
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Who thought nappies could make your stock a six-bagger – in just an hour and a half? That happened to shareholders of Simavita (ASX:SVA) on Monday.
The company gained CE Mark certification for its Smartz technology, which is sensors incorporated into nappies that detect conditions and incidents such as urinary incontinence and falls. It works both in infants and adults.
The original technology was developed in the 1990s by the late Dr Fred Bergman and Simavita backdoor listed in 2014.
Today it announced the major win – which means the product complies with European health, safety and environmental protection standards.
The market’s response was to send shares up 480 per cent from 0.5c to 2.9c – the second largest one-day gain in 2019.
Simavita does not manufacture the final product, it only licences the technology. It told shareholders it was in discussion with other companies about its technology. While it had nothing new to announce in that regard, on Monday it promised to keep the market informed.
Executive chairman Michael Spooner said with a CE Mark now in hand, the tech could be commercialised in Europe.
“Smartz delivers significant competitive advantage to major retailers, distributors and global diaper manufacturers,” he said.
“Importantly, Smartz addresses many of the issues faced in Australia and internationally in the care of the elderly including delivering on significant efficiency gains, whilst dramatically improving overall care standards.”
Chief Commercial Officer Peta Jurd told Stockhead she was “quite surprised” by the share price rise but excited.
“If you look back it’s been a long journey but this is a major milestone”, she said.
“We’ve had a 3rd generation technology, we weren’t starting from scratch but now it’s a new game.”
She said they sought European certification first because there had been commercial interest. But she said about potential certification and expansion in other regions “they will follow”.