Yet another day of fire for Bio-On in Piazza Affari. After the -38% recorded in yesterday's session, 1st October, today the stock failed to gain price, remaining stuck in the opening auction for the whole day. In the end the discount is 10%. In two days, the shares therefore lost 48% of their value, falling from 19,2 to 9 euros.
The publication of the accounts for the first six months of 2019 is at the root of the stock market difficulties of the Bologna-based group, closed with revenues down by 85% and a loss of over 10 million euros. The company experienced a very difficult time this summer due to the criticisms suffered by the Quintessential fund which accused Bio-On of making the vast majority of its revenue from "boxes it controls or affiliates" and of producing virtually nothing in 2018.
Quintessential, after the circulation of the half-yearly, he said he was "'not surprised by the results, which confirm the analysis done".
Bio-On also announced the launch of a new industrial plan and the intention to switch from AIM to MTA. Not only, at the request of Consob, the company has today released more detailed information on the accounts, specifying some points deemed relevant to try to clarify what happened.
Bio On has made it known that the capital increases approved on 30 September by Aldia and Liphe, a joint venture in the cosmetic and oral care sector, were subscribed and paid in by Bio-on and its financial partner Banca Finnat Euramerica. The Bologna-based group also specified that "the exclusive license agreement for the production and commercial exploitation rights of PHA technology in the beverage sector was stipulated on 25 September 2019 by the company with a leading Italian industrial player in the sector, for beverage products, i.e. bottles and the related packaging, packages, labels”.
Instead with reference to ongoing negotiations indicated in the press release, Bion specified that the negotiations concern: supplies of the PHA product in the cosmetics sector, granting of the license for the use of PHA application technology in relation to the sector of materials used in the agricultural field, negotiations with a primary industrial operator for the supply of critical equipment (the fermenter) for PHA production plant, negotiation for the licensing of PHA production in a Central American country, finalization of the negotiation with a joint venture for the licensing of PHA production technology from CO2.
Chapter revenues. Bio-On clarified that the slowdown in revenues recorded in the first half of 2019, 'is also due to the company's strategic assessments resulting from the development of numerous applications of the technology, which have led the company to consider essential for its strategic development , the progressively greater presence also in the PHA production segment”. Hence the decision to direct both a growing shareholding in production companies and a more extensive territorial positioning, a choice made more possible by an even more targeted approach and use of the licensing mechanisms of the PHA production technology owned by Bio-on. The decision to postpone the negotiation of new licenses to the second half of the year therefore appears evident, in line with the changed industrial strategy. “let the company know.
Sui more investments of the plant located in Castel San Pietro Terme (BO), Bio On clarified that they "are mainly due to the acquisition of machinery to internally develop further applications of the PHA material and the intention to make the plant more flexible with respect to the needs production of high quality materials (applications in the cosmetic sector, 3D printing, nutraceuticals and other high-tech sectors)".
Updated at 18.12 on 2 October.
