OBJ Limited

OBJ Details

Launch of RÉDUIT Skincare Range: OBJ Limited (ASX: OBJ) is a leading researcher and developer of magnetic, micro-array drug and ingredient delivery technologies. The securities of OBJ has been suspended from trading. However, the suspension will be lifted after the release of its operations update and completion of a capital raising. OBJ recently announced the launch of its RÉDUIT skincare range, a technology brand to commercialise its enhanced drug delivery technologies in the luxury beauty space. The RÉDUIT One and Hairpods™ range has been rolled out with a focus on the retail and professional haircare markets. The skincare range will be included in RÉDUIT’s Return & Renew and Worldwide delivery services portfolio. The first two products, Clean Vapor and Hydro Boost were launched on 14 August 2020. Over the next two months, the RÉDUIT skincare range will launch a curated selection of exciting and innovative Skinpods™ and devices.

Device Business Subsidiary Acquisition: The company stated that it agreed to acquire some of the subsidiaries from Mr Paul Peros and hence is acquiring Device Business Subsidiary for a consideration of $120,000 worth of ordinary shares. The company has raised $1.5 million before costs and has accepted oversubscriptions for a further 635,351 fully paid ordinary shares at $0.10 per share to raise ~$63,535 before costs.

Quarterly Update: During the quarter ended 30 June 2020, the company received $33k from its customers and used $927k from operating activities. In April, the company secured Loan Facilities ~$2.3 million via the issue of Convertible Notes. This funding helped the company to secure its operations by establishing the infrastructure and driving the RÉDUIT business to commercialization during the course of COVID-19 pandemic.

Quarterly Cash Flow Activities (Source: Company Reports)

Outlook: The global wellness industry has been enjoying a growth trajectory and retains a wide array of opportunities. This represents a massive market opportunity for OBJ to develop and distribute innovative products for various target wellness sectors. The Company’s device technology business is expecting to announce new product launches in the field of surface hygiene. It is also progressing towards an anticipated UK and Australia launch of Bodyguard patches during early 2021. The company is also closely working with Procter & Gamble to deliver personalized skincare treatment to the consumer by integrating smartphone technology with OBJ technology.

Key Risks: The company is exposed to a variety of risks including credit risks, cash flow interest rate risk, Interest Rate Sensitivity, Commodity Price Risk, Liquidity Risk, and Foreign Exchange Risk.

Stock Performance: As per ASX, the stock of OBJ was up 1358.33% on 21 August 2020 and touched a high of $0.200 in intra-day. The stock was last traded at $0.175.

OBJ Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

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