ASX:BCT
Bluechiip Ltd
Investment Summary
The fund managers believe that Bluechiip Ltd (BCT) is at a pivotal moment following the recent licensing agreement with BioLife Solutions, which grants BioLife exclusive rights to incorporate BCT’s innovative technology into its primary packaging for the cell and gene therapy market. In their opinion, this collaboration is a significant milestone for BCT, potentially providing much-needed upfront revenue of $300,000 in the first year and ongoing royalties as products are introduced to the market. The integration of BCT technology into BioLife's established product lines, including the widely regarded CellSeal and CryoCase packaging, is seen as a validation of BCT’s offerings and a critical step toward enhancing the viability of biologics—a vital component in CGT production and delivery.
The fund managers are cautiously optimistic about BCT’s strategic review process, which includes discussions with multiple international companies aimed at formalizing proposals to improve the company's financial position before it resumes trading on the ASX after its AGM on January 30, 2025. They note that BCT's recent addition of a significant new customer in the US further supports their positive outlook. Despite these developments, they acknowledge the challenges BCT has faced due to a prolonged funding position and an extended sales cycle influenced by disruptions from COVID-19 and previous unsuccessful partnership attempts.
Ultimately, while the fund managers express faith in BCT’s patented technology and its commercial potential, they recognize the necessity for strategic partnerships or investment to stabilize the company. They believe that finding an appropriate buyer or investor is crucial and may lead to a superior outcome for stakeholders, provided that BCT can effectively leverage its technological strengths amidst ongoing market challenges.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Manager
Saville Capital
Date
30 June 2024
Price
Unknown
Medium
Monthly Report
Commentary
Saville Capital Emerging Companies Fund updates its investment thesis on Bluechiip Ltd (BCT), highlighting recent developments and challenges the company faces. BCT raised approximately $0.7 million through a placement and a shareholder loan, which will facilitate a comprehensive strategic review. This review will involve a cost-out program and the pursuit of strategic partnerships, investments, or a possible sale, specifically targeting potential buyers in North America and Europe. While Saville Capital remains confident in BCT's patented technology and its commercial viability, the company's ongoing funding difficulties and prolonged sales cycles, worsened by COVID-related disruptions and unsuccessful partnership efforts, have created significant challenges. Therefore, the fund supports BCT's strategy of exploring potential buyers or corporate investors, anticipating that this approach, given the robust nature of its technology, could yield a more favorable outcome for investors.
Saville Capital
Date
30 Sept 2024
Price
Unknown
Medium
Monthly Report
Commentary
Saville Capital Emerging Companies Fund is updating its investment thesis on Bluechiip Ltd, emphasizing a cautiously optimistic outlook. The Fund notes BCT's ongoing strategic review process, which involves in-depth discussions with several international companies, indicating potential for formal proposals in the near future. Furthermore, the recent acquisition of a significant customer in the US market, highlighted by an executed initial contract, underscores BCT's growing market presence. Given these developments, the Fund believes that BCT has the potential to contribute positively to its overall performance, reinforcing its decision to maintain its holdings in the company.
Saville Capital
Date
31 Dec 2024
Price
Unknown
Medium
Monthly Report
Commentary
Saville Capital Emerging Companies Fund continues to hold its position in Bluechiip Ltd, following the company's recent licensing agreement with BioLife Solutions, a prominent player in the bioproduction sector. This partnership grants BioLife exclusive rights to incorporate Bluechiip’s innovative technology into its primary packaging for cell and gene therapy applications, marking a significant milestone for BCT. The deal promises upfront revenue of $300,000, along with potential ongoing royalties as products are brought to market, which could enhance BCT's financial stability. BioLife’s commitment to integrating BCT technology into its high-standard, temperature-sensitive product lines further validates Bluechiip’s offerings. Additionally, while BioLife gains exclusivity for certain applications, BCT retains its broader product capabilities across various sectors. As Bluechiip navigates a strategic review to strengthen its balance sheet ahead of its scheduled ASX trading resumption, this agreement is seen as a pivotal development that could lead to substantial revenue growth and long-term success.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.