Blis Technologies expects $1.3m loss
Dunedin-based biotech Blis Technologies has revised its guidance for the 2013 fiscal year and now expects a loss of $1.3 million.
The listed company is also planning to raise capital by asking existing shareholders to subscribe for new shares, and possibly make a share placement to other shareholders.
Blis, in a statement through the NZX, said it had revised its guidance for the financial year to March 31 to an operating deficit of $1.3m from a deficit of $0.8m advised in March.
Blis shares were today trading 0.3 cents lower at 0.9 cents. The material change in outlook is a consequence of a number of recent developments including the decision of a United States based product formulator to suspend promotion and sales of a product containing BLIS K12 and BLIS M18 ingredients.
The BLIS K12 probiotic is designed to help prevent bad breath, sore throats and upper respiratory tract infections.
Other negatives to impact the bottom line included the deferral of the launch of products containing BLIS K12 into the Chinese market, and a review of immediate supply chain requirements by Blis' distributor Stratum Nutrition.
The decision by Blis shareholders to maintain an NZX listing has also added to previously forecast compliance costs. These adverse events have unfortunately overshadowed the progress achieved by BLIS and Stratum Nutrition in the Asian and European markets in recent months, the company said.
A capital raising initiative being run by boutique merchant bank for Blis was also an influence.The Blis board had conducted a further review of operations and determined to launch a share purchase plan and placement.
''Although alternative capital raising and licensing options have been reviewed, the board considers that none of these proposals are sufficiently advanced to provide the funding certainty required in the current economic environment,'' the company said.
''Further, the board is of the view that in the absence of additional funds raised pursuant to the Murray & Co mandate, a further capital raising in the form of a pro-rata issue to shareholders would likely be required in the 2014 financial year as the company continues to execute its business strategy.''
Share purchase plan documentation would be provided to shareholders later this month providing further background and details of how they can subscribe for new shares.
Any placement of shares would be undertaken at the same price of the shares offered under the share purchase plan.
- The Press
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