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GelTech Solutions (OTCBB: GLTC) produced some solid news this week, and in response the company's share price flew higher on Tuesday and closed with a 20% gain.

GelTech is a company that develops and commercializes environmentally friendly products geared to help "industry, agriculture, and the general public accomplish environmental and safety goals, such as water conservation and the protection of lives, homes, and property from fires."

At a time when governments around the globe are looking to cut costs and conserve resources, while also trying to utilize 'greener' and more eco-friendly products, GelTech's two flagship products could stand to make some serious market inroads.

Both FireIce and Soil20 fit the 'green' bill, when compared to products already existing on their respective markets, and both could be on the verge of making a significant impact in global distribution.

FireIce, considered the company's lead product, is an environmentally friendly dry powder that, when added to water, enhances its ability to fight and extinguish fires. FireIce essentially smothers the fire, far more effectively than water alone, allowing a fire to be extinguished more rapidly and with less water than would otherwise be used. Not only does this allow for safer and more effective firefighting, but it also saves valuable monetary and natural resources - a noteworthy feat in this day and age of economic turmoil when public funding is being drastically cut and municipal fire departments are being boarded up.

In addition to standard firefighting, FireIce also has huge potential applications in the forest fire arena. The US Forest Service tears through billions every year and much of that can be attributed to fighting forest fires.

In a milestone event earlier this year, GelTech received the coveted 'Qualified Product' listing from the U.S. Forest Service for FireIce, enabling the product to be purchased and utilized in large scale firefighting operations both in the United States and around the globe. As noted by the monetary content above, this opens up a pretty big market for FireIce to infiltrate.

The final certifications granted by the USFS are not easy to achieve, demonstrated by the two years of testing and qualifying before the product received the highest given for a 'water enhancer' that could be had. Now boasting those certifications, however, GelTech can now concentrate solely on marketing and distribution.

It was milestone news on the distribution front that had the GLTC share price on the move. The Australian and New Zealand authorities granted FireIce the equivalent designation to the USFS 'Qualified Products List', freeing the product to be utilized in those two regions. In the same release, GelTech also announced the signing of IMCD Group B.V. (IMCD) to be the master distributor of FireIce for Australia and New Zealand.

It's conceivable to believe that the IMCD relationship will grow, too, given that the company - which is based in the Netherlands - has a strong presence in sales, marketing and distribution of specialty chemicals and food ingredients in 35 countries around the world, including in Europe, Asia and Africa.

The deal for Australia and New Zealand is termed for five years and is subject to IMCD meeting defined annual product purchase minimums and comes as a result of a global road show road show that saw representatives of GelTech travel the globe to demonstrate the benefits FireIce and train on its use. The road show has also led to product approvals in China and Russia, lining up 2012 to potentially become one of significant growth for the company, especially when considering that FireIce's major competitors, Phos Chek and Class A foam, are both highly-corrosive, more expensive to use and could be easily replaced by the environmentally-friendly FireIce.

Although company resources are being geared more towards FireIce right now, GelTech has another eco-friendly product with large market potential on its hands with Soil2O. While FireIce essentially smothers a fire, Soil2O absorbs moisture from the air, brings it into the soil and keeps it from quickly evaporating. This technology has numerous applications on turf and dirt (think dusty, unpaved roads, golf courses and baseball diamonds) and has the potential to reduce irrigation requirements by up to 50%.

As with FireIce, the water-conserving qualities of Soil2O offer consumers another eco-friendly choice.

While losses have piled up this year with the ramp-up of growing distribution, insiders are out to prove that the company's game plan moving forward is solid enough to meet the end-goals of profitability and growth. Roughly 50% of all company shares are owned by insiders, a solid show of support for the business plan.

GelTech is ready to make a major push in terms of distribution, and given the eco-friendly qualities of its lead products, there's reason to believe that a push into the mainstream is practical.

Disclosure: No position.

 

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