-Early in the year, P&G provided OBJ greater visibility on its planning for expansion of markets and products it intends distributing through 2018 to 2021.
The obvious question here was why management weren't able to disclose this new information to the market. This is the chance to have greater visibility as to the future direction of the company in relation to its biggest and only partner.
-The parties will negotiate in good faith to agree and execute product license term sheets, which include royalties and/or subscription fees payable to OBJ, as and when these products become defined.
It has been brought up before but I think its a good insight into how P&G will roll out our new technology. Will there be a subscription fee to use the app which will advise and recommend olay products? Or will a fee be paid by P&G for each subscriber that downloads and purchases our product along with the royalty fee? Speculation galore.
-The negotiation of these changes form part of OBJ’s strategy to develop or co-develop products for distribution into markets outside skincare, providing greater potential revenues to the Company rather than license fees
Good to see management are looking outside of skincare with the backbone from the initial eye wand laying the foundation for future products to be developed and commercialised outside of skincare.
Several market sectors have been identified for OBJ product development
Interesting to see what management have in store, but once again a very broad statement which of course means that we will be talking minimum of a year from any exciting news.
Bodyguard
From what I read from bodyguard we are nowhere near commercialisation even though it was specifically stated by Jeff last year that Bodyguard was expected to be commercialised by years end 2018. Additional testings required by our prospective partners means that there will be further development at the end of those testings, which of course means that a comfortable 6months will be added on any timeline 12months to be safe. Looks like commercialisation of the bodyguard is more likely second to end of year 2019.
Surface Hygiene
-Partnering with a UK-based multi-national which is a market leader in surface cleaning, for potential use with its well-known hygiene brands.
So the question is obviously who is this UK-based multinational and why wasn't the partnership announced?
Surface Hygiene also seems to be a year away as testings take place and products are tweaked and developed. No wording suggesting that anything is imminent nor any developments with partners.
DCE
-DCE is part of the Company’s successful Advanced Packaging initiative from which two new P&G products have already emerged
So we have two advanced packaging products due to to be commercialised with P&G. Only good news with this here. Company is also looking at other partners to develop more products which will mean much greater royalty potential than the current offerings.
On a final note good to see this little snippet.
OBJ Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
(20min delay)