ASX:BCT
Bluechiip Ltd
Investment Summary
The fund managers believe that Bluechiip Ltd (BCT) is taking decisive steps to enhance its position, having recently secured $0.7m through a placement and shareholder loan to fund a thorough strategic review. They express confidence in BCT’s patented technology but are concerned about its persistent weak funding and elongated sales cycle. However, they are supportive of BCT's exploration of strategic partnerships or a potential sale, seeing this as a necessary move given the company’s current challenges. Recent developments include engaging with several international companies regarding formal proposals and adding a new significant customer in the US market. Most notably, the execution of a licence and supply agreement with BioLife Solutions marks a major milestone, providing BCT with upfront revenue and the potential for ongoing royalties. The fund managers remain cautiously optimistic that these efforts will lead to a favorable outcome and contribute positively to the fund’s performance.
Commentary From The Managers
Saville Capital
31 Dec 2024
Unknown
- Saville Capital updates their investment thesis on Bluechiip Ltd (BCT).
- Bluechiip has announced a significant licence, development, and supply agreement with BioLife Solutions, a market leader in bioproduction tools.
- BioLife will integrate BCT’s unique technology into its proprietary primary packaging containers for the Cell and Gene Therapy (CGT) market.
- This partnership signifies a major milestone for BCT, promising ongoing royalties and product sales as products reach the market.
- BioLife's tools support numerous clinical applications, essential for maintaining the viability of biologics.
- The agreement includes an upfront license fee from BioLife of US$300k for the first year.
- BioLife will pay quarterly licence or royalty fees on BCT-enabled products, ensuring future revenue streams.
- BioLife will have exclusive global use of BCT technology in primary containers for CGT manufacturing.
- Exclusivity does not apply to standard BCT products across multiple applications or existing products.
- The incorporation of BCT technology is valued up to US$750k in BioLife’s packaging containers.
- BioLife will also have nonexclusive access to distribute BCT’s existing product range, with assistance from BCT's team.
- The Chairman and CEO of BioLife stated that BCT's technology can help differentiate their products in critical environments.
- Saville Capital believes this agreement validates BCT’s product suite and ensures much-needed upfront and ongoing revenue.
- Bluechiip continues engaging with equity providers to strengthen its balance sheet before resuming trading on the ASX.
Saville Capital
30 Sept 2024
Unknown
- Saville Capital continues to hold its position in Bluechiip Ltd.
- The company is currently engaged in a strategic review process to evaluate its future direction.
- BCT is in detailed discussions with multiple international companies to formalize proposals for board review.
- Recently announced a significant customer acquisition in the US market, including an initial contract execution.
- Saville Capital remains cautiously optimistic about the outcomes of the strategic review.
- A successful review could positively impact the overall performance of the Fund.
Saville Capital
30 June 2024
Unknown
- BCT undertook a placement and obtained a shareholder loan to raise ~$0.7m during the quarter.
- Funds are being used to enable a thorough strategic review, which includes a significant cost-out program.
- Exploration of strategic partnerships, investments or a possible sale of the business targeting interested parties in North America and Europe.
- Saville Capital remains firm in its belief in BCT’s patented technology and its commercial potential.
- Persistent weak funding position and elongated sales cycle has placed the Company in a challenging position.
- Supportive of BCT's approach to find a potential buyer or corporate/strategic investor.
- Given the strength of BCT’s technology, this approach should lead to a superior outcome for investors.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.