BLT
04/11/2015 10:45
GENERAL
PRICE SENSITIVE
REL: 1045 HRS BLIS Technologies Limited
GENERAL: BLT: Some Change To Guidance After Discoloured Product Discovery
4 November 2015
Some Change To Guidance After Discoloured Product Discovery
As a precautionary measure, Blis Technologies Limited halted trading on the
NZX Monday morning after speckled discolouration in samples of a
blister-packed lozenge product was discovered in Europe. Blis Technologies
is implementing a process to replace the affected product.
This particular formulation was contract manufactured by Blis specifically
for one European customer. A quality control investigation has now revealed
that under extreme humidity some speckling of product is possible.
Investigations of retention samples held by the company in New Zealand show
the product remains safe although cosmetically unacceptable.
Europe experienced a particularly hot and humid summer this year and the Blis
Technologies Research and Development team is now working with the company's
European distributor to improve the methods of transporting and storage from
the point of leaving New Zealand to getting to the end consumer.
Improvements are being implemented in production, quality control and
logistics. As a short term solution to meet ongoing demand some lozenges
will be manufactured in Europe.
The underlying science behind Blis products is unquestioned and backed by
clinical trials.
The problem does not affect product developed for other markets such as the
US, Japan, and China. Products sold in New Zealand such as ThroatGuard,
FreshBreath, and TravelGuard have a different formulation and are not
impacted. Plans for expansion of product sales in Japan and Australia
scheduled for later this year remain on track.
While some additional costs are expected in terms of replacement of product,
the board is not revising its revenue guidance, but is making an as yet
undetermined provision of up to $350,000 against the half year results.
On October 14, based on prospective half year results, forward orders,
planned customer product releases and the prevailing exchange rate, Blis
Technologies revised its revenue guidance for the full year for revenue to
increase by over 100% to in excess of $5.3m.
BLIS Technologies Limited
Peter Fennessy
Chairman
End CA:00272819 For:BLT Type:GENERAL Time:2015-11-04 10:45:10
