Blis Technologies loses $1.4m but puts faith in foreign sales

By LIAM DANN

Listed biotechnology company Blis Technologies has reported a loss of $1.41 million for the six months to September 30 and announced plans for a $3.1 million rights issue.

The additional capital will fund the international debut of its health products.

Chief executive Kelvin Moffatt said the company had a range of products ready to go.

It was about to shift its focus from research and development to marketing.

The loss - 10 per cent more than for the same period last year - was not unexpected, he said.

The company had hoped for slightly better domestic sales but ultimately it would be international sales that would drive its success.

Gaining regulatory approval to begin selling in key markets such as China and the United States was an expensive and time-consuming process.

"That's just an expense we have to meet."

Moffatt expected that approval for sales in the American market would be granted in the next six months, with other countries following by the end of next year.

Meanwhile, the company had continued its research and development programme, he said.

Blis had developed its bacterial throat protector so that it could now be used as a cure for chronic bad breath.

Blis' products are based around building up levels of desirable bacteria in the mouth and throat to replace bad bacteria that cause infection.

They are marketed as health supplements rather than medicines in order to speed up the regulatory process.

Moffatt said that Blis had also developed a product to counteract tooth decay.

Interest in the preventative treatment for sore throats was strongest in Asian markets, while the US was more interested in the oral hygiene products.

"We've had a huge amount of interest from the States. We have US companies that want the products right now."

In the past six months operating revenue was down to $269,000 from $301,000 in the same period last year. Sales revenue increased to $197,000 from $182,000, but other income declined to $72,000 from $119,000 in the same period.

Earlier in the year the company posted a loss of $2.4 million for the 12 months to March.

The rights issue will raise $3,169,750 through the issue of one new ordinary share for every two existing ordinary shares at a price of 10c each.

The issue must be approved by shareholders at a meeting on November 24.