KUALA LUMPUR (April 21): HLT Global Bhd said its wholly-owned subsidiary HL Advance Technologies (M) Sdn Bhd has entered into a distributor agreement with Accobiotech Sdn Bhd for the distribution of Covid-19 rapid test kits around the world.

In a filing with the bourse today, HLT said the contract is for an initial period of one year starting from April 20, 2020 until April 20, 2021, and shall be renewable upon terms and conditions to be agreed upon between the parties.

Under the agreement, HL Advance will be able to distribute the test kits either directly or through its sub-agent worldwide.

The company said the move to distribute the test kits is appropriate, given the outbreak in Malaysia and around the world.

“Further with the prevalence of Covid-19 and return of day-to-day business post Movement Control Order (MCO) as imposed by the government, the parties believe that there will be an immediate demand for Covid-19 rapid test kits either directly or through HL Advance’s sub-agent. 

“HLT intends to capitalise on its vast local and international networks of glove manufacturers and glove buyers (hospitals and pharmacies) to cross-sell this new product,” it said.

It expects the agreement to contribute positively to its overall earnings as well as its earnings per share in the future.

HLT shares fell 1.5 sen or 6.98% to 20 sen, giving it a market capitalisation of RM102.4 million.