BPH - MC at .2c < $6m - 2.84b shares on issue - 280K CR completed, providing funding for immediate future
Spent a bit of time today compiling relevant announcements and info for punters on BPH's ventures, which include medical tech, O&G prospects and exposure to MM. Below is a summary I've put together to generate some exposure and save a bit of reading.
An overview of BPH on nextsmallcap: disallowed link/brain-monitoring-medical-marijuana-how-tiny-bph-looking-capture-fast-growing-markets/
BPH own a 4.47% interest in Cortical Dynamics, developers of the BARM system with successful trials throughout various hospitals in Sydney and industry exposure in South Korea and is currently conducting trials in a UK hospital. BPH owns the right to convert debt and increase its holding in the group which could reach approx 15.7%. Corticol is being IPO'd with a prospectus issued (below).
After converting debt, BPH will hold approx 26m shares at $0.20 worth $5.2m at IPO price.
BARM is currently being trialled in a major UK hospital: https://www.asx.com.au/asxpdf/20190701/pdf/44685gt4rzpf10.pdf
(2) Advent Energy - Oil and Gas
BPH holds a 26% interest in unlisted O&G exploration company Advent Energy. Previously there were legal issues with the JV partner, resulting in a lengthy court case which was recently resolved resulting in BPH becoming the controller of Advent Energy:
This is a major draw card for BPH, with Petroleum Exploration Permit 11 in the offshore Sydney basin.
"This permit has been assessed to contain up to 13.2 Tcf (P50 or 'best estimate' level) prospective recoverable gas resources adjacent to the major population region of Sydney and excellent port and power generation infrastructure."
(3) Patagonia Genetics - Cannabis and Hemp exposure
BPH has taken an initial 10% interest in Patagonia Genetics, based in Chile, with an option to further their stake to 49%.
There is a wealth of information available on the development of the MM industry in the Latin America region, with particular emphasis on the significantly cheaper cost of production compared with the developed world.
It is expected the company will be able to produce cannabis and hemp far cheaper than its American and Canadian peers.
Overview of MM industry in Latin America: https://www.prnewswire.com/news-releases/cannabis-cultivation-and-extraction-potentially-costs-80-less-in-latin-america-300875391.html
Quote: "Combined, it is estimated that LATAM will be able to produce cannabis – in commercial quantities – for nearly 80% less than the rest of the world. That's a pretty big advantage."
Patagonia have access to 20 hectares of farmland, with applications pending to produce both cannabis and hemp. BPH has the option to acquire up to 49%. They will pay Patagonia $800K cash (including the initial 10%), and issue 600m shares. At a share price of 0.001, the total consideration is $1.4m.
There are a number of ASX-listed stocks like ECS for example, which have 17.5 hectares of land, don't yet have cannabis permits and are trading at a $30m market cap.
IMO, given the most rudimentary peer review of Patagonia alone, the 49% share puts the value of BPH well above a $6m MC. Combined with the value of the Cortical IPO and enormous potential of Pep-11, this is an absolute no-brainer, given it is currently trading at <$6m.
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