On 30 August 2011 OBJ Limited Announced their Preliminary Final Report Appendix 4E. The announcement did not really provide any new information but some key lines I have pulled out include:
“The company continues to progress its technology and its business development initiatives in collaboration with international pharmaceutical, cosmetic, homecare and consumer healthcare partners.”
This really highlights the wide range of applications our technology can be applied to and the number of “irons we have in the fire”. There has been some discussion amongst OBJ holders and I believe the general consensus is that an announcement could come from FMCG #1 at any stage, GSK could also announce an agreement with milestone payments in the near future (although commercialisation of a product is still some time off) and FMCG #2 appears to be the furthest from any formal agreement.
It is however hard to judge the current status of the agreements and one needs to be confident in the technology and its application to hold comfortably through these periods. At this stage I do not mind if the share price stays where it is and my only concern in the short to medium term is the threat of dilution from a capital raising. Although the company has very low cash burn for a bio tech stock there is always that thought in the back of my mind.
Some other positives to come out of the announcement include: “The Company also announced the signing of a Strategic Alliance Agreement with one of the world’s largest consumer healthcare and homecare product companies.”
And “Highlights of the period include encouraging progress in the multi-product Strategic Alliance with one of the world’s leading Fast Moving Consumer Goods companies (FMCG)”
Again it is nothing that we did not already know but underlines the size of the partners we are dealing with and the potential our technology has.
Link to Announcement
Link to Announcement
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