I used facts, where you use marketing hype. I stated my assumptions and I thought they were pretty generous. Saying that I have a negative slant because I don't hold, is a pretty weak argument. If you really believe that, then the opposite would apply to holder and those currently down on their investment in OBJ.
Parafix?
Yes, it is a small manufacturer in the context that previously OBJ were signing agreements with a billion dollar multinational.
In 2017 OBJ announced they they were finalising tooling with a multinational manufacturer and were expecting sales to start in 2018. Well none of that happened.
This was the original announcement in March 2017 where they mention 7b in sales, 100 manufacturing plants, etc....
https://www.asx.com.au/asxpdf/20170329/pdf/43h3s3tg6bz798.pdf
Parafix is a small UK-based company and nothing like the original "partner". So, I wonder what happened here?
According to Parafix's own site, they turned over just GBP11m in 2015
https://parafix.com/2016/05/11/a-record-year-for-parafix-holdings-ltd/
https://uk.globaldatabase.com/company/parafix-tapes-and-conversions-limited
Little Green Pharma?
https://www.globenewswire.com/news-...40-4-of-Little-Green-Pharma-in-Australia.html
Which includes this:
"For the financial year end 30 June 2018, Little Green Pharma generated Revenue of AUS$8,337 and had a net loss for the period of AUS$3,757,810. This was first year that the company was operational as a legal cannabis business."
The value of LGF is around $20m, based on the recent purchase by LGC. Sure, they are a cannabis company and are new, but they are hardly a company with a track record of bring new technology to market. So you think I am being dramatic by saying
"revenue would seem a long way off, if ever." I think that it is a very kind statement given the facts.
Now I am not saying there is not potential, but both Parafix and LGF cannot be considered industry heavyweights. Given the history of OBJ trying to get their technology to market, you will have to forgive my pessimism - the OBJ history is littered with promising developments with great potential but little actual result (shaving, oral, surface hygiene, COTY, product accelerators, etc). Don't take my word for it though. Go back and read the OBJ market updates from 2016/17/18. Even P&G didn't want some of the OBJ technology for their own brands.
Beauty technology division? Sounds impressive. Can't argue that the new CEO is not great for the role, and OBJ are paying for it. But when you are starting from scratch, or close to it, things get expensive and hurdles need to be jumped over - these things take time. How long until revenue starts coming in from this though? Lot's more to come on this, I am sure.
Potential. This word gets thrown around a lot with OBJ. But I think that there needs to be a distinction between what is possible, and what is probable. Many things are possible, but how probable are they really? Well, that is up the the individual to work out, I guess based on experience and the company's own track record. And at the end of the day it all comes back to cash. No doubt that the next 12 months will be interesting for OBJ, but I am sure that has been said a few times before.
(20min delay)