A$318,000 adjusted cash flow, A$23,000 cash and a May-July 2027 plant target

Cash position remains the immediate pressure point

Holista Colltech Limited (ASX:HCT) finished the September quarter with only A$23,000 in cash, leaving the company reliant on A$1.466 million of unused financing facilities and tighter cash management to fund operations. On the company’s reported figures, that represented approximately 1.77 quarters of available funding at 30 September.

The headline cash outflow was distorted by the A$1.159 million second and final payment under the ProImmune settlement. After excluding that non-recurring payment, Holista reported positive operating cash flow of approximately A$318,000, compared with A$149,000 in the preceding quarter. That is a company-defined comparison measure rather than statutory operating cash flow: reported net cash used in operations was A$841,000.

The settlement completes the US$1.8 million agreement reached earlier this year after a US judgment was enforced in Western Australia, following the ProImmune settlement agreement. Holista said it does not expect the quarter’s level of operating cash outflows to continue, but also said it may pursue additional capital raising if required. The available facilities include trade-finance arrangements with specified uses, rather than a single unrestricted cash pool.

Revenue edges higher as Collie timetable moves

Group revenue rose 5.2% quarter on quarter to approximately A$1.58 million, while customer receipts increased 12.4% to A$1.66 million, helped by customer deposits and overdue debt recoveries. Supplements remained the main contributor at A$1.39 million. Food Ingredients revenue climbed to A$138,000 from A$19,000, while Infection Control and Agriculture sales increased to A$27,000 after customer orders followed trial runs.

The more consequential operational update concerned the Collie collagen facility. The 50:50 Ovicoll joint venture with Swang Chai Chuan Limited has completed the acquisition of the site, following the Collie land acquisition, but the plant’s original December 2026 operating target is no longer achievable.

Holista now targets initial production between May and July 2027. The company said additional regulatory and building approval requirements emerged after further assessment of the planned advanced nano-collagen activities. The Development Application remains under review by the Shire of Collie, with potential DWER assessment, possible public advertising, National Construction Code review, fire-services referral and building certification still forming part of the approvals pathway. The timing remains indicative and depends on regulatory assessments, construction, installation and commissioning.

Inventory and collagen development bridge the delay

Holista said existing Kuala Lumpur inventory is expected to meet customer orders through the first half of 2027, providing some cover while the Collie project moves through approvals and construction. Separately, work with Regenerex Pharma continues on North American wound-care products, including the US FDA 510(k) process, European CE marking and EUDAMED registration.

The company is also advancing three ovine-collagen intellectual-property programs. It cited a preliminary 74-fold reduction in endotoxin levels in work supporting a US patent application, laboratory studies on an HOCl-resistant scaffold, and a reported reduction of more than 5.3 log10 in aerobic microbial count from nano-copper pelt pretreatment. Holista cautioned that patent applications are not guaranteed to succeed and that some experimental results remain subject to validation.