I attended the Investor Presentation in Adelaide tonight (young guy in navy suit sitting two rows back on the left). Had to leave straight after but would have been good to stick around for a bit and meet everyone.
Atmosphere Glyn spoke first and didn't really say much but painted a picture of the company’s long journey to get to where they are today.
Jeff spoke next and ran through all of the work currently underway with the various parties. He seemed extremely excited and passionate. Glyn jumped in a few times where it seemed that Jeff had given slightly too much info. Possibly a bit of theatrics to pump things up a bit, but they were a good team.
Glyn then took the floor back to answer some questions. Hats off to Jasetheace who was relentless in his questioning around revenue and time frames. Glyn didn't flinch and wouldn't give too much.
Below were the key take outs from me as I remember them.
P&G
SKII Eye Wand and Wave II Interesting fact from Jeff, SKII consumers spend on average $500 per month on cosmetics. Jeff also mentioned that the soft launch of the SKII eye wand added $7m to SKII's bottom line.
Confirmed that SKII have committed to both the Eye Wand and Wave II devices. This is part of the licence term sheet and the exact royalty percentages and figures are currently being negotiated as part of the full licence agreement. However, they did say that the royalty will be a percentage of the wholesale price of the combined unit (device and formulation).
SKII DCE Jeff mentioned that there are 2 products in the pipeline with SKII for the DCE technology.
Olay Eye Wand We know that P&G have committed to the eye wand for a second P&G brand. Glyn wouldn't say which one but mentioned it was a much bigger brand than SKII.
Then Jeff got up and let the word "Olay' slip when talking about the eye wand and holding another wand prototype which was exactly the same as the SKII device but white. Make of that what you will.
Olay Wave II The Olay Wave II device hasn't been committed but it doesn't sounds far off.
Gillette When talking about the possibilities of incorporating OBJ tech into shaving products, Jeff let another big word slip. This time it was the word "Gillette" and the mention of 3.5 million shavers sold per day.
While this was an obvious product, and I'm sure it was music to many people's ears. Glyn mentioned that P&G tasked them with making the diamagnetic shaving strip for 1/10th of a cent production cost with a two fold increase in the immersion of the active ingredient. They were able to do this but with a 3 fold increase in immersion of the active ingredient. Sounds like they’re onto a winner that's close to commitment.
Coty Inc They're still working closely with Coty on the powered products. Jeff mentioned that the recent acquisition of multiple brands by Coty was expected to be finalised in October this year. P&G brands are part of this acquisition and work with P&G on these brands is moving across to Coty.
Jeff also mentioned that Claims support for Coty is expected to be completed this week with a product to be released at the end of this year. Glyn had to but in at this point and added something along the lines of "if they sign off". Sounded very promising to me.
Reckitt Benckiser Magnetic micro array for nurofen gel tube is currently under development with Reckitt Benckiser. Not commercialised yet but Jeff was nodding his head and basically said it was going to be before Glyn jumped in and said hopefully.
Bodyguard Glyn seemed very sure that Bodyguard would be commercialised by multiple brands for different purposes. A direct quote from Glyn when asked about time frames was "amazed if it stays still for very long".
When discussing P&G losing exclusivity, Glyn mentioned that it was only because they ran out of time and wasn’t any reflection of their interest in Bodyguard.
Voltaren (Novartis) Voltaren was the NSAID we smashed out of the park in the Bodyguard double blind trial. Glyn mentioned that they've now come to OBJ for possible product development. I think that is huge that our product was able to beat the competition to the point that they'd rather join us than fight us. Big tick!
I know there was a lot more but these were my notes and the things that stood out for me. It's clearly been a long road to get where we are and there's still some way to travel. There's no doubt in my mind that we're exactly where we want to be and when things happen they will happen in a big way.
I'd like to have more of an idea of timeframes as I'm sure everyone would but it's just a nature of the beats we're working with. Having said that, after tonight I'm more comfortable with my investment than ever.
This is only my take on what was said and isn't to be treated as investment advice. Please do your own research and consult an expert.
OBJ Price at posting:
8.0¢ Sentiment: Hold Disclosure: Held
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