Bluechiip Limited advances its strategic repositioning with a new licensing agreement valued up to USD 750,000 alongside ongoing efforts to lift its trading suspension and grow sales.
- Signed licensing agreement with BioLife Solutions worth up to USD 750,000
- Received USD 300,000 upfront license fee in December 2024
- Trading suspension remains pending full year audited accounts and annual report
- Quarterly sales reached $535,000 with expanding customer base to 38 laboratories
- Cash balance at quarter-end stood at $121,000 after partial R&D advance repayment
Strategic Licensing Deal with BioLife Solutions
Bluechiip Limited (ASX: BCT), a specialist in advanced sample management technologies for cryogenic and harsh environments, announced a significant licensing agreement with BioLife Solutions during the December 2024 quarter. The deal, signed on 2 December 2024, includes an upfront license fee of USD 300,000 and anticipates further quarterly royalty payments tied to product sales. The partnership is expected to integrate Bluechiip’s patented MEMS-based wireless tracking technology into BioLife’s CellSeal and CryoCase packaging solutions, with an initial project valuation of up to USD 750,000.
This collaboration positions Bluechiip to tap into BioLife’s established footprint in the cell and gene therapy (CGT) market, a sector experiencing rapid growth due to increasing clinical applications. BioLife’s reputation as a gold standard provider in bioproduction tools complements Bluechiip’s innovative sample tracking capabilities, potentially accelerating adoption and recurring revenue streams.
Financial and Operational Highlights
During the quarter, Bluechiip recorded product and software license sales of $69,000, contributing to total sales of $535,000. The company expanded its direct market reach to 38 laboratories across 18 customers, including a new leading global life sciences company actively ordering Bluechiip products. This growth builds on existing relationships with three top 20 global pharmaceutical companies and a prestigious Ivy League institution, all of which represent opportunities for increased software license renewals and consumable sales.
Cash receipts from customers totaled $545,000, supplemented by loan proceeds of $256,000 from unrelated shareholders. Subsequent to the quarter, Bluechiip received a net $646,000 from the Australian Government’s R&D Tax Incentive refund, which was fully applied to reduce the R&D advance loan. Despite these inflows, the company’s closing cash balance was $121,000 as of 31 December 2024, reflecting ongoing operational expenditures including staff costs, marketing, and administration.
Trading Suspension and Strategic Review
Trading in Bluechiip shares has been suspended since 1 October 2024 and will remain so until the company lodges its full year 2024 audited financial statements and annual report. The company is maintaining an open dialogue with its auditors, PKF Melbourne, aiming to resolve outstanding issues and restore market quotation.
Simultaneously, Bluechiip continues its strategic review focused on securing further partnerships, refinancing options, and potential investment or sale opportunities. The BioLife agreement is a key milestone in this process, demonstrating tangible progress in commercialising Bluechiip’s technology and enhancing its market positioning.
Outlook and Market Positioning
Looking ahead, Bluechiip is prioritising sales growth in calendar year 2025, leveraging the BioLife deal and expanding its customer base. The company’s technology remains unique in providing wireless sample temperature and identification tracking in extreme environments, a critical capability for biobanks, clinical trials, and cold-chain logistics.
While the company manages tight cash reserves and the challenges of a trading suspension, the strategic review and new licensing revenue streams offer a pathway to stabilisation and growth. Investors will be watching closely for the release of audited accounts and further updates on partnership developments.
Bottom Line?
Bluechiip’s BioLife deal marks a pivotal step, but lifting the trading suspension and securing sustainable funding remain critical hurdles.
Questions in the middle?
- When will Bluechiip release its full year 2024 audited financial statements to end the trading suspension?
- How will the BioLife partnership impact Bluechiip’s recurring revenue and market penetration in 2025?
- What are the prospects and timelines for securing additional strategic partnerships or refinancing?