In the late 1990s-early 2000s, OxiClean burst on the scene as one of the hottest stain remover and cleaning products on the planet. In today’s terms, the brand “went viral” before “going viral” was a thing, leading to annual sales ballooning to around $250 million. With these type of sales, it didn’t take long for industry juggernaut Church & Dwight (NYSE: CHD) to step in and pay $325 million to acquire OxiClean in 2006, which continues to thrive today with dozens of products under CHD’s umbrella.
Following the proven playbook of OxiClean, CleanGo GreenGo is the new kid on the block with a next-generation, environmentally friendly cleaning technology that appears to one-up OxiClean. CleanGo GreenGo represents a potential franchise as not only a cleaner/stain remover, but also a broad disinfectant business against a spectrum of stubborn viruses and bacteria.
OxiClean became popular for by utilizing oxidation technology to clean clothes, carpets and more before branching out into new products, like Kaboom toilet cleaners. In a similar lane, CleanGo GreenGo is an FDA, EPA and Health Canada approved manufacturer of cleaning products, inclusive of antiseptic skin and hand cleaners, employing the power of emulsification to clean and disinfect in household, commercial and industrial applications.
COVID-19 is part of the reason that the global household cleaning market is forecast to rise from about $31.2 billion in 2019 to $39.0 billion in 2020.
CleanGo GreenGo prides itself on using simple ingredients in a complex process to simplify cleaning while protecting the environment. All its products are non-toxic, non-damaging to any material and safe around all people, animals and plants.
Soon, the investment community will have an opportunity to participate in the growth of CleanGo GreenGo following the completion of the acquisition of CleanGo GreenGo by SoftLab9 Technologies Inc. (CSE:SOFT) (OTCPK:SOFSF). SoftLab9 management recently said it is targeting this Quarter to complete the transaction, which could serve as a boon to valuation any day now.
“While we certainly see and appreciate a comparison to the model of a blockbuster like OxiClean and would relish such success, we actually see CleanGo GreenGo as a more diverse franchise opportunity of cleaning and sanitization products,” said Rahim Mohamed in a phone conversation with Baystreet.ca. “We are eager to finalize the transaction and bring CleanGo GreenGo into our family, at which point we will continue acceleration of marketing efforts across all verticals.”
Mohamed is referring to several sales channels. CleanGo GreenGo currently sells a total purpose, industrial, and carpet & fabric products, primarily through Amazon.com. In the short term, SoftLab is wrapping up several other deals that will significantly expand the revenue model.
First and foremost is the CleanGo GreenGo acquisition, which includes a newly launched commercial fogging operation. Mohamed is bound by disclosure rules as the acquisition process is completed, but could go so far as to comment that the initial reception of the new service has been strong considering the great need for disinfection services amid the COVID-19 pandemic.
So far, a Canadian taxi company is using CleanGo’s service to provide its customers a piece of mind regarding avoiding potential infection from a previous rider.
The utility of the fogging service is impressive. For starters, CleanGo’s fogging covers every nook and cranny where traditional cleaning applications fail to reach. Moreover, the product is dry in only a matter of seconds, meaning a taxi could fog the vehicle in a matter of minutes. Importantly, the effects of disinfection last for 48-72 hours, that means that a single fogging keeps a taxi safe for 2-3 days before another fogging is required.
In the discussion with Mohamed, multiple applications for public transportation were discussed, including school buses, public buses, airplanes, boats, etc. Commercial buildings and businesses – anywhere that people congregate – also represent ideal client candidates.
The company uses ATP bacteria detection meters to measure the remaining bacteria to prove to customers that pathogens are effectively destroyed.
Also coming down the pipeline are completions of other growth-driver deals for SoftLab9 centered on providing turnkey protection solutions for viruses and bacteria. These include finalizing an agreement with Australia’s Emergence Technology, which will give SoftLab9 sub-distribution rights to five different COVID-19 rapid test kits.
“Going on a year into the global coronavirus pandemic, there remains strong demand for reliable rapid diagnostics for SARS-CoV-2,” said Mohamed. “By many experts’ accounts, we are not close to the end of the pandemic, so this is a natural extension of our model to address this demand and build our brand as a go-to in pathogen detection and eradication.”
In the same vein, in August SoftLab9 inked a distribution agreement with Mexico-based HEG, S. de C.V. to distribute personal protective equipment (PPE), including masks, gowns and coveralls, across the USA and Canada. The company is currently awaiting the requisite approvals from the FDA and Health Canada regarding the gowns and coveralls before marketing efforts can begin.
Again, the world is seeing a “new norm” with respect to PPE and warding off viruses/bacteria. As reported by Fox News, some pundits opine that people might be wearing masks for “several years,” suggesting SoftLab9 is making the right moves to establish itself as a leader in the space upon closing deals like those with HEG and Emergence.
August was a busy month for SoftLab and CleanGo, including CleanGo penning a supply 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.
“We are so pleased to be able to offer consumers the choice to use a non-toxic green cleaner in their defence against germs. 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” said Lisa Little, CBIO President and CEO discussing the partnership.
In aggregate, four deals are on the table and moving towards completion that represent significant near-term milestones and potentially millions of dollars in revenue for SoftLab9, a company trading at approximately C$9.8 million (US$7.46 million).
Remember that the driving force behind OxiClean was a brilliant marketing strategy getting the product in front of millions of consumers. This is where things get very interesting for SoftLab9 and CleanGo GreenGo in a matter that goes relatively undiscussed. SoftLab9 has retained Harvest Growth as its marketing company. For those not in the know, Harvest Growth was the marketing firm behind OxiClean’s exponential growth. OxiClean is by no means the only success for Harvest Growth. The marketing gurus also launched brands and ran campaigns for Kraft Heinz’s (NASDAQ: KHC) Planters Peanuts, Bona Cleaners, NuWave, and Spin Master’s (TSX: TOY) GUND plush toys, amongst others.
To say that SoftLab9 has positioned itself for growth is arguably a gross understatement. Boxes should soon start to be checked for completion of each of the four aforementioned deals, led by the acquisition of CleanGo GreenGo, which should initiate a cascade of disclosures and expectations from management providing greater insight as to the accretive nature of each new business component.
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