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Bluechiip Limited (ASX: BCT) presented a host of developments in its AGM

  • November 27, 2020 04:40 PM AEDT
  • Kunal Sawhney
    CEO Kunal Sawhney
    2235 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Bluechiip Limited (ASX: BCT) presented a host of developments in its AGM

Summary

  • Bluechiip Limited has faced challenges due to limited engagement with customers, end-users, and OEMs during the pandemic.
  • However, the company was able to cut cost, focus on newer opportunities and strengthened its supply chain during these challenging times
  • With the production scaled over 5 million chips per year, it’s all set for the future.
  • The re-election of the director, Mr Andrew Cox has also been approved by the shareholders in the AGM
  • Bluechiip share price is up by 20% this month, after a downtrend in the last month
Gold MTF non-AMP

On 27th November 2020, Bluechiip Limited (ASX: BCT), provider of monitoring and tracking services, released a presentation regarding some developments and challenges of the business with some resolutions that were taken up in the AGM. Some of the highlights are

Challenges faced by the company during the pandemic

The travel restriction in the country limited the engagement with customers, end-users, and OEMs (Original Equipment Manufacturer). The company also faced some disruptions in its operations, including facility restrictions at the customer’s site. However, the surge in Covid-19 related consumables for target OEM’s was impacted due to decision cycles delays by OEMs for new technologies.

Management’s quick decision helped to tackle the situation

The company was also able to contain cost and focused on progressing opportunities, especially in North America. This included assisting OEM’s towards license agreements, including the IVF market. It also strengthened its supply chain and built scale and efficiency in multiple formats and responded well to the opportunities in COVID-19 affected markets.

Well-positioned for the future

Bluechiip has made a strong foothold in its niche and is well prepared for the future with its IP protected highly differentiated technologies. It has scaled its production to over 5 million chips per year and caters to $200 million growing target market. The company held sufficient cash of $6.6 million (as at the end of September) with another $1.5 million due to an R&D tax refund.

Bluechiip’s differentiated Lifescience Cold Chain

The company has highly differentiated core technologies which enable it to minimize the total cost of sample ownership and maximize specimen integrity via adequate cold chain handling and reporting. It is utilizing cryo-safe technology and processes, and the Cryogenic market receives 680 million samples, making it quite a large market for the company.   

Image Source: Bluschiip’s ASX update dated 27th November 2020

Resolutions passed in the AGM

The voters were pleased with the performance of Director, Mr Andrew Cox, which resulted in his re-election as the director with 96.46% proxy votes. Amongst this, the other two resolutions regarding the remuneration report and approval of additional 10% placement capacity were also passed with 98.78% and 97.99% proxy votes, respectively.

Stock Performance

Bluechiip share price is ended flat for the day at A$0.059 on 27 November 2020. The stock had been in a one-sided downtrend in the month of October, falling from the month’s high of A$0.067 to the low of A$0.04. However, in November the tide changed, and the stock is up by more than 20%, also supported by the ASX 200 rally.

The last six months return stands at negative 10.7%, and since the March low of A$0.49, the stock is more or less moving in a sideways trend.

Also Read: BrainChip (ASX:BRN) Shares Soar on ASX Upon Scheduling of September 2020 Quarter Update

 

 


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