RE: Share tip20 Aug 2019 17:42
Copied this from Share Prophets update on OPTI a couple of days ago.
"OptiBiotix Health (OPTI) is pleased to announce an exclusive manufacturing, supply and distribution agreement for its SlimBiome weight management technology in Australia and New Zealand…
This is with Maxum Foods Pty Ltd – a dairy supplier headquartered in Brisbane and operating a dry blending facility in Melbourne, as well as distribution centres throughout Australia and New Zealand. Founded in 2003, it had turnover of AUS$150.7 million in 2018 and has been named one of Australia's fastest-growing SMEs.
SlimBiome is to be supplied by Maxum as a specialised functional ingredient into a wide range of applications, with it noted the Australian weight management market is estimated to be worth AUS$320 million (currently circa £180 million) in 2019.
Of course, noting that rather than an indication of actual revenues from the agreement is somewhat ramptastic, but we do concur with OptiBiotix’s view that working with such “partners around the world, provides the best opportunity of increasing our global commercial reach and catering to the growing interest we are seeing in SlimBiome from partners worldwide”.
We continue to consider such high margin agreements see the company on track to deliver £7-10 million profit in a couple of years and, with no balance sheet worries, see strong upside from a current sub £57 million market cap. Reinforced in talking to CEO Stephen O'Hara last month the stance remains strong buy."