This looks a markedly different company from 12 months ago. Expenses associated with the underperforming German side of the business have been cut, and the company has been well set up by Rodney Hannington’s steady & low key leadership for revenues from 3 pathways: cannabis, covid 19 & telehealth.
1.Teleheath, the company’s original proposition, is having its moment in the sun and may well be here to stay considering the efficiencies. The revenue deal signed with JHL is important for the company for a few reasons. Most of all, it validates Bodytel. Secondly, Lifespot Health will be paid licence fees & development fees by Jayex. Last but definitely not least, Michael Boyd of SHL fame is chair & number 1 shareholder of JHL. Michael’s vision in backing new medical trends extends back to the 90’s when he loaded up on SHL shares around 5 cents. If Michael is involved in this deal, it would be very reassuring & exciting for LSH shareholders to see his sign of approval.
2.Cannabis will likely come back into play now that the world has had its attention shifted by covid, and this represents a potential recession proof revenue stream for the company should it make traction in either the youth proof vaping or medical vaping sector. Ionic are not dead yet and recently showing signs of life with a recent acquisition; John Gorst its leader is a very good promoter so if this deal can get back on track, I’d expect serious quantities of vapes being shipped to North America.
3.Covid-19 is wreaking havoc in Melbourne & unlike 3 months ago, LSH’s Bluetooth fevertel thermometerwith additional covid monitoring features is now ready at the very time Melbourne needs it, as no one wants another stay at home lock down. How long this pandemic will last is hard to say at this point, although my research shows it possible to adapt the smart thermometer to colds & the flu so there may be an ongoing market for fevertel beyond the virus; most likely for athletes, the elderly, & young children. So far, hand sanitizer plays have dominated the ASX but anyone can make hand sanitizer at home; how many ASX companies can connect medical devices that talk to your phone?
Of these 3, it seems logical to expect some organizations in Melbourne (this is potentially a very long list) would be very interested in a low cost fever & covid symptoms monitoring system that provides an additional layer of protection for its valued back to work employees and possibly concerned parents for their back to school children.
LSH remains speculative, unloved or unknown, recently raised cash & low SOI and therein lays the foundation for potential exponential gains if Rod & his team can execute well on these 3 revenue pathways.
All imo & GL
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