Bod Science Faces Extended Administration Amid Delayed Biortica Audit and Acquisition Uncertainty
Bod Science reports a $576k cash outflow in Q1 FY2026 amid ongoing administration and delays in Biortica audit completion. The company plans a shareholder vote in November to approve its acquisition of Biortica and exit from administration.
- Net cash outflow of $576k driven by administration fees
- Customer receipts rose 39% quarter-on-quarter to $540k
- DOCA period extended to 20 November 2025 due to audit delays
- Binding Share Purchase Agreement to acquire Biortica subject to shareholder approval
- Extraordinary general meeting expected in late November 2025
Financial and Operational Context
Bod Science Limited, a cannabis-focused distribution company currently operating under a Deed of Company Arrangement (DOCA), has reported a net cash outflow of $576,000 for the first quarter of fiscal year 2026. This marks a significant reversal from the previous quarter's net inflow of $858,000, largely due to administration and other fees totaling over $1 million since the start of the administration period. Despite these outflows, the company’s quarterly receipts from customers increased by 39% to $540,000, reflecting stronger sales volumes and the introduction of new product SKUs.
DOCA Extension and Acquisition Progress
The DOCA period has been extended to 20 November 2025, primarily because of delays in completing the audit of Biortica Agrimed Limited, the company Bod Science intends to acquire. Bod entered into a binding conditional Share Purchase Agreement with Biortica’s shareholders in November 2024, with the acquisition contingent on satisfying several conditions, including shareholder approvals and regulatory compliance. The company remains suspended on the ASX during this process, with the Deed Administrator, Andrew Barnden, overseeing the proceedings.
Upcoming Shareholder Meeting and Outlook
An extraordinary general meeting (EGM) is expected to be convened in late November 2025, following Biortica’s compliance with the outstanding conditions. At this meeting, shareholders will vote on resolutions critical to effecting the DOCA and completing the acquisition. The outcome of this vote will be pivotal in determining Bod Science’s path forward, including its potential re-compliance with ASX listing rules and exit from administration. The company has also received funding support from Biortica during the quarter, which helped offset some operating expenses.
Strategic Implications
Bod Science’s progress toward acquiring Biortica represents a strategic pivot aimed at revitalizing the company’s operations and financial position. The increase in customer receipts suggests some operational momentum, but the substantial cash outflows and ongoing administrative hurdles highlight the challenges ahead. Investors will be watching closely for the EGM outcomes and subsequent financial updates to gauge the viability of Bod Science’s turnaround strategy.
Bottom Line?
November’s shareholder vote will be a critical juncture for Bod Science’s future beyond administration.
Questions in the middle?
- Will the extraordinary general meeting approve the DOCA and Biortica acquisition as planned?
- How will the delayed audit completion impact the timing and terms of the acquisition?
- What operational changes will Bod Science implement post-acquisition to sustain growth?
