Buy Date: 28th August 2023 | Accumulation
Stock Note:
14th March 2024 | Share Price $0.06
BGT’s share price has bounced off its low for the year of 3.8c to 6.7c. Purchased BGT at 9c in August 2023. They have since raised capital to help fund the development and commercialisation of their products. Which is the bulk of the reason their share price retreated from 9c, to where it is today. At this stage of the commercialisation cycle most companies are capital hungry and it is better to raise capital when your share price is higher than lower. As such I would be expecting BGT to raise capital again this year on the back of their improving share price.
Bio-Gene Technology Limited (ASX:BGT) is an Australia-based agriculture technology development company. The Company’s principal activity is to develop and commercialize insecticides/pesticides.
Its platform technology is based on a naturally occurring class of chemicals known as beta-triketones, that seeks to address the global problems of insecticide resistance and toxicity. The Company’s lead beta-triketone insecticide products include Flavocide and Qcide.
BGT is currently focused on the Crop Protection, Grain Storage, Public Health, Consumer Applications and Animal Health markets and according to BGT they have an addressable market of US$31.1bn, with the majority of this market based in the USA.
BGT’s main sticking point is their novel mode of action (MOA), meaning their products attack pests and insects in a new way to existing products on the market; and by using their products exclusively or with other available products on the market. Pests/insects that have otherwise become resistant to other MOA’s will now be susceptible to BGT’s novel MOA.
BGT have raised capital via equity in FY23 and are advancing towards commercialising their products via agreements to help with the registration, licencing, and manufacturing their products on a commercial scale. BGT are expecting first meaningful revenues/cash flow in FY27 via royalties through licencing of their products and proceeds for product sales.
My strategy is to keep accumulate BGT shares on the back of milestone announcements until they reach commercialisation and start to generate revenue and cash flow.
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