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- Agtech developer Bio-Gene Technology (BGT) finished the financial year with over $5.5 million in the bank, progressing its commercial strategy along the way
- Right now, the company is working on a new wave of insecticides to combat the current market offering’s toxicity and insect resistance rates
- Ultimately, BGT shed $512,000 on operation activities over the June quarter, and more than $1.6 million over the course of FY20
- Additionally, the $5.5 million in reserves was primarily bolstered by this quarter’s capital raise, which added nearly $2.7 million to Bio-Gene’s bottom line
- At the start of the June quarter, the agtech company had over $3.3 million in the bank
- Today, investors brought Bio-Gene’s share price up by over seven per cent
- Shares are trading for 15 cents each at Thursday’s market close
Agtech developer Bio-Gene Technology (BGT) finished the financial year with over $5.5 million in the bank, progressing its commercial strategy along the way.
Right now, the company is working on a new wave of insecticides to combat the current market offering’s toxicity and insect resistance rates.
The company’s tech centres on a chemical class called beta-triketones, a type of compound that can kill or knock out insects. It could bring on new solutions for manufacturers as they consider public and animal health, as well as crop protection, as they create the insecticides.
At the end of the day, BGT wants to develop a portfolio of insect controls to bring to the market.
“With the global insecticide market valued at in excess of US$32 billion (around A$44.79 billion) per annum, there is real potential to disrupt the current paradigm with an insect control solution that is targeted, safer, has low environmental impact and is cost-effective to use,” noted Bio-Gene CEO and Managing Director, Richard Jagger.
Over the quarter, BGT made progress on a number of commercial opportunities. One of the company’s highlights include a partnership with Clarke to develop its Flavocide and Qcide products for mosquito control in the Americas.
In addition, the company completed stage one of its collaborative research program, which investigates ways to control pests in grain stores.
Bio-gene also delivered positive results in its eco-toxicity study on flavesone — the active component of its Flavocide product.
Operational costs
As a result, research and development is BGT’s biggest expense at this time. This quarter, it spent $347,000 in this area, and burnt nearly $1.4 million over the course of the financial year.
Bio-Gene also picked up $52,000 in commercialisation expenses, as well as $75,000 in management and director costs.
$43,000 in customer receipts, $12,000 in interest payments, and a $115,000 government grant were the only gains on this quarter’s operational balance sheet.
Ultimately, it means BGT shed $512,000 on operation activities over the June quarter, and more than $1.6 million over the course of FY20.
Cash in the bank
BGT ended the quarter with over $5.5 million in reserves. However, that figure is split over a number of accounts; there’s $32,000 to BGT’s name in the bank, $190,000 in a call deposit, and $5.3 million in a term deposit. The latter has a fixed maturity term, and, unlike the call deposit, BGT can’t dip into the cash whenever it wants.
The $5.5 million in reserves was primarily bolstered by this quarter’s capital raise, which added nearly $2.7 million to Bio-Gene’s bottom line. At the start of the June quarter, the agtech company had over $3.3 million in the bank.
If the company continues to burn cash at this quarter’s levels, it could be a long time before it needs to tap investors for cash again.
Speaking to this quarter’s results, Richard said the company had advanced its commercialisation strategy.
“There are now two partnerships underway across both grain storage and public health reflecting the broad potential of Bio-Gene’s proprietary technology. With eight Material Transfer Agreements now in place, we are confident that there will be opportunity to announce further partnerships during the current financial year,” the CEO stated.
Now its fourth-quarter report is done and dusted, BGT shareholders will be on the lookout for the company’s annual report on August 20.
Today, investors brought Bio-Gene’s share price up by over seven per cent. Shares are trading for 15 cents per share at Thursday’s market close.
