BLT - Blis Technologies

**pierre** · 02-11-2015, 12:34 PM

A takeover offer does seem a likely opportunist possibility now that the company is clearly on a growth trajectory.

If that is the case, I wonder what premium to the current SP will be needed to flush out sufficient sellers to reach 90% threshold?

I've been a patient holder since 2005 and even though I've built up my holding to 4m shares over recent years and averaged my cost down to 1.6c, I wont sell for less than 5c at this time. I doubt that an offer anywhere near that figure is remotely likely.

If the growth that BLT is achieving is occurring in China I believe the future potential is huge, so I'd rather stay on board and enjoy the ride than sell out now.

Of course, the Trading Halt may be nothing to do with a takeover at all so watching and waiting with a great deal of anticipation.

BLT has certainly been an "interesting" investment.!

**kiwidollabill** · 02-11-2015, 12:45 PM

Sorry lads, not the positive news we would be hoping for.

https://nzx.com/companies/BLT/announcements/272699

**pierre** · 02-11-2015, 12:47 PM

Oh Bugger! A quality issue with one of BLT's products!

As I said earlier - an interesting investment - but would prefer it wasn't this type of issue causing the trading halt.

Fingers crossed it's not a major!

**Leftfield** · 02-11-2015, 01:05 PM

Yep Bugger, however the trading halt is a responsible way to tackle the issue until more is known.

**NeverQuestion** · 02-11-2015, 01:18 PM

Originally Posted by pierre

Oh Bugger! A quality issue with one of BLT's products!

As I said earlier - an interesting investment - but would prefer it wasn't this type of issue causing the trading halt.

Fingers crossed it's not a major!

Seems like the company struggles a bit with bad press...

I hope this is seen as a commitment to quality and strong leadership from the top

And not incompetence or major production failure

**pak** · 03-11-2015, 07:54 PM

A suggestion the quality control is related to the blister packs. This would be a better case scenario than the product itself. Here's hoping......

http://www.pharmacytoday.co.nz/busin...ct-issues.aspx

**Leftfield** · 04-11-2015, 11:31 AM

BLT / ANNOUNCEMENTS

Some Change To Guidance After Discoloured Product Discovery

10:45am, 4 Nov 2015 | GENERAL

4 November 2015
Some Change To Guidance After Discoloured Product Discovery
As a precautionary measure, Blis Technologies Limited halted trading on the NZX Monday morning after speckled discolouration in samples of a blister-packed lozenge product was discovered in Europe. Blis Technologies is implementing a process to replace the affected product.
This particular formulation was contract manufactured by Blis specifically for one European customer. A quality control investigation has now revealed that under extreme humidity some speckling of product is possible. Investigations of retention samples held by the company in New Zealand show the product remains safe although cosmetically unacceptable.
Europe experienced a particularly hot and humid summer this year and the Blis Technologies Research and Development team is now working with the company’s European distributor to improve the methods of transporting and storage from the point of leaving New Zealand to getting to the end consumer. Improvements are being implemented in production, quality control and logistics. As a short term solution to meet ongoing demand some lozenges will be manufactured in Europe.
The underlying science behind Blis products is unquestioned and backed by clinical trials.
The problem does not affect product developed for other markets such as the US, Japan, and China. Products sold in New Zealand such as ThroatGuard, FreshBreath, and TravelGuard have a different formulation and are not impacted. Plans for expansion of product sales in Japan and Australia scheduled for later this year remain on track.
While some additional costs are expected in terms of replacement of product, the board is not revising its revenue guidance, but is making an as yet undetermined provision of up to $350,000 against the half year results.
On October 14, based on prospective half year results, forward orders, planned customer product releases and the prevailing exchange rate, Blis Technologies revised its revenue guidance for the full year for revenue to increase by over 100% to in excess of $5.3m.

**simla** · 04-11-2015, 11:34 AM

No big deal in the end. A provision of up to $350k might affect "expectations for the full year are now for a surplus in earnings before interest tax depreciation and amortisation", as mentioned in the previous update? Or maybe not.

Meanwhile, half year report due this month and still expecting full year revenue "in excess of $5.3m".

Some good news hidden there though, as the release said " expansion of product sales in Japan and Australia scheduled for later this year remain on track", which is extra news. Nice to hear of progress in Aus.

All up, it seemed a fairly intelligent response.