Rereading the Announcement of 20 March which let us know that the Nutrition Systems deal was dead, it really was not good enough for the Board to leave the matter there.
The deal was announced in early November and it seems likely that it would not have been announced before the finance and cap raising were sewn up. So it can scarcely be that COVID 19, which went feral in February, was the cause of the deal falling over.
The more likely situation is that the deal never stacked up, no one had actually committed funds and no bank was prepared to touch a company with OBJ's history and figures. If any new large shareholders had expressed any interest, when push came to shove, they figured that they could do better elsewhere.
When the announcement was made it must have been obvious to the Board that the shareholders ask "What is the Plan B?", but no Plan B was announced. Instead we got vague mentions of Surface Hygiene, Bodyguard, and co-manufacturing of patches and supplements with NS.
As to these, Surface Hygiene has been on the backburner for years, largely because it doesn't have much to offer. Sure it may be 99.98% efficient at eliminating bugs but the present cleaners do a 99.96% job on them anyway, which is good enough, and no one is going to take on an unknown cleaning product in the current circumstances. So the mention of Surface Hygiene was no more than the Board throwing scraps to us.
As to P&G, it is missing in action. Whatever happened to the new products and the app? Who knows, because we aren't being told. Nor do we have the slightest clue about our likely income from P&G.
Bodyguard has been our best chance for years, but it has not made it to the market. Perhaps Peros was going to do that, but, if so, it cannot have been a priority because Reduit is promoting hair treatments instead.
So shareholders remain in the dark about the Plan B.
Nor for that matter do we know about our liability for the spotters fee. It might have been conditional on the NS deal being settled, but it could also have been payable once the shareholders approved the deal, in which case we should be told whether or not it has already been paid.
Another matter is that we are no longer trading.
On 20th March OBJ said that it "will consult" with the ASX" about a reinstatement, but nothing has happened yet. There was mention of its "compliance and funding obligations", which IMO reveals what the problem is. Quite simply OBJ is running out of money.
So where does this leave us now?
Any talk of co-manufacturing new products with NS is simply hot air. As is any talk of getting Surface Hygiene ready for market.
What one can expect soon is either an announcement how Peros might be funded or, alternatively, an announcement that OBJ has received a very good offer for its technology which it has decided to accept.
I'll leave it to you to fill in the gaps.
OBJ Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
(20min delay)