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 |
|---|
| 1 |
| 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 |
|---|
| 2 | Cash at 1/7/16 | | | | $112,000 | |
|---|
| 3 | Total raised | | | | $1,387,000 | |
|---|
| 4 | Total cash | | | | $1,499,000 | |
|---|
| 5 |
| | | | | |
|---|
| 6 | 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% |
|---|
| 7 | Invest into HLS5/MDS | | $0 | 0% |
|
|
|---|
| 8 | Invest into Oil & Gas | | $0 | 0% |
|
|
|---|
| 9 | Working Capital | $60,000 | $378,000 | | $786,000 (incl. forecast from 30/9/17 Appendix 4c) | 52.43% |
|---|
| 10 | Expenses of Offers | $0 | $20,000 | | $113,000 | 7.54% |
|---|
| 11 | Repayment of borrowings (to Grandbridge) | $0 | $0 | | $160,000 | 10.67% |
|---|
| 12 | 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 Appendix 4C 31/7/17 (total for year) = $550,000 (ref 6)
- BPH Appendix 4C 01/11/17 = $114,000 (ref 7),
and the forecast cost to 31/12/17
, - BPH Appendix 4C 01/11/17 = $122,000 (ref 7)
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?
Ref 1 (BPH Share Purchase Plan (SPP)) -
http://www.asx.com.au/asxpdf/20160601/pdf/437mdvhrc7qjht.pdfRef 2 (Completion of SPP) -
http://www.asx.com.au/asxpdf/20160706/pdf/438dd8qfwyj28z.pdfRef 3 (BPH Energy Rights Issue Offer Document) -
http://www.asx.com.au/asxpdf/20170111/pdf/43f7njrtwyt7ll.pdfRef 4 (Completion of Rights Issue) -
http://www.asx.com.au/asxpdf/20170307/pdf/43glpyyvg33yjw.pdfRef 5 (BPH Appendix 4C Quarter ended 31 March 2017) -
http://www.asx.com.au/asxpdf/20170426/pdf/43hrcxd3jydnrh.pdfRef 6 (BPH Appendix 4C Quarter ended 30 June 2017) -
http://www.asx.com.au/asxpdf/20170731/pdf/43l1wzv3y2kf47.pdfRef 7 (BPH Appendix 4C Quarter ended 30 September 2017) -
http://www.asx.com.au/asxpdf/20171101/pdf/43nvh4zwlb7019.pdfRef 8 (BPH 2017 Half Year Report)-
http://www.asx.com.au/asxpdf/20170223/pdf/43g736xmn7tcj6.pdfRef 9 (BPH 2017 Full Year Report)-
http://www.asx.com.au/asxpdf/20171101/pdf/43nvhbdp4lktd2.pdfRef 10 (Grandbridge Appendix 4C Quarter ended 31 March 2017)
http://www.asx.com.au/asxpdf/20170426/pdf/43hrd73zgs9v42.pdfRef 11 (Grandbridge Appendix 4C Quarter ended 30 September 2017)
http://www.asx.com.au/asxpdf/20171101/pdf/43nvyj933nvs2r.pdfRef 12 (Grandbridge Appendix 4C Quarter ended 31 December 2016)
http://www.asx.com.au/asxpdf/20170201/pdf/43fq2rfx484ftb.pdfRef 13 (BPH Entitlement Issue Prospectus) -
http://www.asx.com.au/asxpdf/20171123/pdf/43phdpl8mld8r0.pdf
(20min delay)
