Bluechiip Ltd (ASX:BCT) Rights Issue to Raise Up To $2.53 Million to Grow Sales Pipeline

Bluechiip Limited (ASX:BCT) (Bluechiip or Company) today announced that it is raising up to $2.53 million (before costs) through a pro-rata non-renounceable one for three rights issue of fully paid ordinary shares (New Shares) in Bluechiip to all eligible shareholders holding shares on the record date (Entitlement Offer).

Funds raised from the Entitlement Offer will be used to invest in direct support of our OEM partners, build and to fund ongoing working capital requirements.

Highlights

- Bluechiip to raise up to $2.53 million through a 1:3 non-renounceable rights issue.

- Funds raised will be used to invest in direct support of our OEM partners, build inventory and to fund ongoing working capital requirements.

- 1 new share offered for every 3 existing shares held at a price of $0.028 per share, a discount of 10% to the last traded price and approximately 18% to the last 3 months VWAP at which Bluechiip Shares traded on ASX.

Details of the Rights Issue (Entitlement Offer)

Under the Entitlement Offer, eligible shareholders will be able to subscribe for one new share for every three existing shares held on the record date of 8 June 2017 at an offer price of $0.028 per New Share (Offer Price).

In addition to being able to apply for new shares under the Entitlement Offer, eligible shareholders will also have the ability to apply for additional New Shares in excess of their entitlement that are not subscribed for by other eligible shareholders under the Entitlement Offer at the Offer Price.

New Shares issued under the Entitlement Offer will rank equally with existing Bluechiip shares in all respects.

Key dates in the Entitlement Offer are provided in the Timetable section below. As the Entitlement Offer is non-renounceable, shareholders will not be able to sell or trade their entitlements that they do not take up.

The entitlements under the Entitlement Offer may only be taken up by eligible shareholders being persons who are registered holders of Bluechiip ordinary shares at 7:00pm (Sydney time) on 8 June 2017 and have a registered address in Australia or New Zealand, or who fall under a specified exemption provided for under the applicable laws of another jurisdiction.

Shareholder information

Eligible shareholders will receive an information booklet including a personalised entitlement and acceptance form which will provide further details of how to participate in the Entitlement Offer. A copy of the information booklet and updated investor presentation will also be lodged with ASX. Those shareholders who Bluechiip determines to be ineligible shareholders will also be notified.

Timetable (indicative)

Event: Announcement of Entitlement Offer
Date: Thursday, 1 June 2017

Event: Lodgement Date - Entitlement Offer Document, Appendix 3B and cleansing notice
lodged with ASX
Date: Monday, 5 June 2017

Event: Dispatch of Notice containing information required by Appendix 3B to Shareholders
Date: Tuesday, 6 June 2017

Event: Ex Date - The date on which Existing Shares commence trading without the Entitlement to participate in the Entitlement Offer
Date: Wednesday, 7 June 2017

Event: Record Date - The date for determining Entitlements of Eligible Shareholders to participate in the Entitlement Offer (7.00pm (Sydney time))
Date: Thursday, 8 June 2017

Event: Entitlement Offer Document sent to Shareholders - Anticipated despatch of Entitlement Offer Document and Entitlement and Acceptance Forms - Entitlement Offer opens
Date: Tuesday, 13 June 2017

Event: Closing Date - The last day for receipt of Applications (5.00pm (Sydney time))
Date: Friday, 30 June 2017

Event: Notify ASX of Shortfall
Date: Wednesday, 5 July 2017

Event: Allotment Date - Allotment of New Shares under the Entitlement Offer
Date: Friday, 7 July 2017

Event: Despatch Date - Anticipated despatch of holding statements for New Shares
Date: Friday, 7 July 2017

Event: Expected commencement of normal trading in New Shares on ASX
Date: Monday, 10 July 2017

Note: the above timetable is indicative only and subject to change. All references to time are Sydney time. The Company reserves the right, subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules, to amend the indicative timetable set out above or to withdraw the Entitlement Offer at any time.

Iain Kirkwood, Bluechiip Chairman said, "The business continues to grow and the sales pipeline is beginning to grow. We expect to report cash receipts from sales of over $250,000 this year through license fees and sales of developer kits. This year alone we have sold 12 developer kits including repeat orders. As recently announced we signed up our third OEM partner - this one a leader in the US market. Our IVF business which was signed up in FY16 is now expected to commence supply in FY18 after a few delays. We have high expectations of very solid sales growth from both the IVF market and international market".

He added, "the directors decided to price the Entitlement Offer at $0.028 per share to provide all existing shareholders with an incentive to fully subscribe for their entitlement offer ahead of any new shareholders that may be invited to come in to the company via private placement".

Bluechiip CEO Andrew McLellan said, "Our highly differentiated, expanding and protected core technology is now being incorporated into our partners' products with an immediate, addressable market of over US$250 million from our 3 executed licence and supply agreements. Our most recent agreement with Labcon North America is a clear demonstration that our pipeline of partnership opportunities continues to accelerate and convert. We now have 12 developer kits delivered to potential OEM partners including delivery this month of a kit to a large multinational in the over-US$2B Biopresservation market.

The capital raised through the rights issue will allow Bluechiip to move to a sustainable revenue generating business through the delivery of products to our existing and new partners. We expect significant revenue growth in FY'18 on partner's product launch".


About Bluechiip Limited

Bluechiip Limited (ASX:BCT) understands that every sample - stem cells, blood, eggs, sperm and other biospecimens - is critical, so our objective is to manage each one with optimal quality in the most efficient way. Bluechiip's advanced management solution is the only one that provides sample temperature with ID in cryogenic environments to. Most importantly, this delivers confidence in every sample.

Bluechiip's unique patented technology is a MEMS-based wireless tracking solution that contains no electronics. It represents a generational change from current tracking methods such as labels (hand-written and pre-printed), barcodes (linear and 2D), and Radio Frequency Identification. Bluechiip tags are either embedded or manufactured into storage products such as vials or bags. Each product can be easily identified, and critical information such as sample temperature, is detected by readers and stored in the Bluechiip software. In addition to functioning in extreme temperatures, the Bluechiip(R) Advanced Sample management solution can survive autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.

Bluechiip's technology has applications in healthcare, including in cryogenic storage facilities (biobanks and biorepositories), pathology, clinical trials and forensics. Other key markets include cold-chain logistics/supply chain, security/defence, industrial/manufacturing and aerospace/aviation.

Bluechiip: Delivering confidence in every sample.

    

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