Benzinga | Apr 1, 2021 07:17AM EDT

Sonoma Pharma Stock Is Trading Higher After Distribution Pact With EMC Pharma

* Sonoma Pharmaceuticals Inc (NASDAQ: SNOA) has entered into an agreement with EMC Pharma LLC for the exclusive right to manage, market, and distribute Sonoma's HOCl-based prescription dermatology and eye care products in the U.S. for an initial term of five years, subject to extension.

* EMC Pharma will also have a non-exclusive agreement to manage, market, and distribute certain Microcyn-based wound care products into government channels.

* As part of the partnership agreement, EMC will acquire all of the existing inventory and pay a royalty and transfer prices over the initial five-year term.

* The parties agreed on specific minimum purchase requirements.

* Price Action: SNOA shares are up 30.6% at $9.7 in the premarket trading on the last check Thursday.