(MENAFN- ABN Newswire)
Quarterly Report Melbourne, Oct 18, 2018 AEST (ABN Newswire) - Bluechiip Limited (Bluechiip or the Company) ( <>
Activities Report for the quarter ended 30 September 2018
Highlights during the quarter
- New three-year deal worth USD11.9m ($15.9m) added to existing Labcon North America (Labcon) Development and Supply Agreement
- Completed Placement during this quarter and Share Purchase Plan (SPP) subsequent to quarter end with total capital raise of $7.45m
- Continued supply to customers' orders including Labcon's scale up with delivery of chips and sales recorded for the quarter of $108K
- Cash balance at 30 September 2018 $7.163m (comprised $5.213m cash at bank and $1.95 m from SPP held on trust)
Business Progress Update
On 29 August 2018, the Company announced that it had updated its development and supply agreement with Labcon North America (Labcon) for a three year term to supply chips, readers, software and engineering services worth USD11.9m ($15.9m).
The agreement provides Bluechiip to meet the orders from Labcon effective 24 August 2018 in the following manner:
(a) Supply of chips, readers, software and engineering services worth USD4.2m ($5.8m) over a two year period;
(b) Supply of products and services with a minimum order of USD7.4m ($10.1m) in the third year following the two year period; and
(c) Extend a further two (2) years of development and supply contracts to a fourth and fifth year with minimum orders to be determined.
Corporate Update
The Company has raised $7.45 million before costs through the completion of the following:
- Placement to sophisticated and professional investors with $5.50 million proceeds fully received and 93,220,339 new ordinary shares issued at $0.059 per ordinary share (Placement); and
- Share Purchase Plan to its existing shareholders with $1.95 million proceeds fully received and 33,091,519 new ordinary shares issued at $0.059 per ordinary share.
Commentary on the Cash Flow Report
Bluechiip recorded sales revenue of $107,798 and sales receipts of $72,436 for the quarter,
Net operating cash outflow for the September 2018 quarter was $1,123,242, increased from $936,423 for the June 2018 quarter. This was mainly attributable to the increase in operating expenses which include marketing consultant fees and expenses in connection with increased marketing activities.
The financing activities for the quarter were related to proceeds received from the Placement and fee paid to an institutional broker in connection with the Placement.
Outlook
The Company remains focused on the following:
- Fulfilling the purchase orders received from customers and the receipt of subsequent cash inflows arising from them.
- Ongoing delivery of chips as part of the fulfilment of the orders received from partners including Labcon.
- Scaling the production of chips with the aim of achieving economies of scale and bringing down the production cost of chips.
- Advancing negotiations for the licensing of Bluechiip's technology and securing new licence agreements with other OEM partners in addition to the existing licence agreement with Labcon for the delivery of Bluechiip technology and support services.
- Research and development to meet our current and potential OEM partners' requirements, arising from the sales of developer kits to them in prior quarters. The developer kits enable potential OEM partners to integrate Bluechiip's technology into their own products.
- Progress work on registering further patents to add to our existing 25 confirmed patents.
About Bluechiip Ltd
The unique tag is based on MEMS technology and contains no electronics. The tag can either be embedded or manufactured into a storage product, such as vials or bags. Easy identification, along with any associated information from the tag such as temperature can be detected by a reader, which can also sense the temperature of the tagged items. The traditional identification technologies have significant limitations. Whereas a barcode requires a visible tag or line-of-sight optical scan, bluechiip(R) technology does not. Unlike labels, barcodes and RFID, the bluechiip(R) technology can sense the temperature of each item a tag is attached to, or embedded in.
The bluechiip(R) technology has initial applications in the healthcare industry particularly those businesses which require cryogenic storage facilities (biobanks and biorepositories). bluechiip(R) offers the only technology that enables accurate and reliable tracking of products including stem cells, cord blood, and other biospecimens. In addition to functioning in extreme temperatures, the bluechiip(R) tracking solution can survive autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.
The bluechiip(R) technology has other healthcare applications in pathology, clinical trials and forensics. Several other key markets outside of healthcare include cold-chain logistics/supply chain, security/defence, industrial/manufacturing and aerospace/aviation.
Further information is available at http://www.bluechiip.com
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