In the period 1/7/16 to 31/12/17 BPH has raised and spent as follows:
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
0
Usage promised in SPP (1/6/16)
Usage promised in Offer document (11/01/17)
Actual funds raised / use of funds
Percentage use against total cash
1
Cash at 1/7/16
$112,000
2
Total raised
$1,387,000
3
Total cash
$1,499,000
4
5
Invest into Cortical Dynamics
Total raised to be split across 3 investments
Total raised to be split across 3 investments less Working Capital and Expenses of offer
$100,000
6.67%
6
Invest into HLS5/MDS
$0
0%
7
Invest into Oil & Gas
$0
0%
8
Working Capital
$60,000
$378,000
$786,000 (incl. forecast from 30/9/17 Appendix 4c)
52.43%
9
Expenses of Offers
$0
$20,000
$113,000
7.54%
10
Repayment of borrowings (to Grandbridge)
$0
$0
$160,000
10.67%
11
Cash remaining (based on forecast from 30/9/17 Appendix 4c)
$340,000
22.68%
In both the SPP dated 1/6/16 (finalised 6/7/16 – refer to Ref 1 and 2) and the Offer document dated 11/1/17 (completed 1/3/17 – refer to Ref 3 and 4) nominated that the funds raised would be used to invest into:
Cortical Dynamics
HLS5 / MDS
Advent / Oil & Gas
As at 30/9/17 (latest information available) only $100,000 of the funds raised in BPH has been invested into Cortical Dynamics since 1/7/16, with NO cash investments into Oil & Gas or HLS5 or MDS (Appendix 4C uploaded to ASX:BPH 31/7/17 (ref 6), also refer to note 10 of the 2017 financial accounts – ref 9)
The SPP and Offer documents nominated total Working Capital / Administration and Corporate Costs from these raisings to be $438,000 (SPP = $60,000 (ref 1), Offer Document = $378,000 (ref 3)). Based on the actual costs to 30/9/17:
BPH has forecast a total spend of $786,000 on Working Capital / Administration and Corporate Costs to 31/12/17.
Repayment of borrowings (to Grandbridge) since 1/1/17 = $113,000 (Grandbridge Appendix 4C uploaded 26/04/17 = $70,000 (ref 10), Grandbridge Appendix 4C 01/11/17 = $40,000 (ref 11)). A repayment was nominated prior to this date in the Grandbridge App 4C uploaded 01/02/17 = $50,000 (ref 12).
There was no repayment of Grandbridge loans nominated in either of the raising documents.
BPH Energy announced in its 2017 half year accounts (ref 8 - refer to Note 2c on page 10) that, “Grandbridge Ltd has confirmed that financial liabilities of $569,213 (30 June 2016: 285,392) will not be called upon for repayment for a period of at least 12 mouths from the date of this report”. Despite this guarantee, the Directors of BPH Energy paid Grandbridge $113,000 since this guarantee was provided (up to 30/9/17).
Can the BPH Directors (and Tom Fontaine who was a director at the time of the January 2017 raising) please explain:
1) Why the funds have not been invested as nominated in the January 2017 Offer Document
2) Why the Working Capital expense is such a large portion of the total raised funds
3) Why the nominated Working Capital amount in the January 2017 Offer document ($378,000 – Ref 5) is forecast to be spent in under 9 months following the raising rather than lasting the 15 months as nominated in that document (ref 6 and 7)
4) Why money was paid to Grandbridge despite the Grandbridge guarantee
5) If the funds raised in the current raising (ref 13) will be spent/invested as nominated in this document?
(20min delay)