Australian (ASX) Stock Market Forum

BUD - Buddy Technologies

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How about we let the awesome oscillator and the FA tell the story...?

My thoughts are; we have seen the worst of the pullback, for now. The stock is still subject to market volatility.
I see 5cent as lowest support with resistance up to 10cent.
Need another solid push, after consolidation at a higher level than current, to break 10c...
Note; Still waiting for LIFX Clean COVID19 Efficacy test results....
Also, the running out of stock situation is good and bad... watch this space, financially a good place to be in with money coming in as fast as going out...faster coming in with forward sales perhaps?
In my opinion only ....

Screenshot_20201019-152442.png
 
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ASX MARKET RELEASE
LIFX Clean Passes U.S. Testing, Ready for Retailer Orders; Webinar

SUMMARY

● LIFX Clean has passed its United States efficacy testing, conducted by Q Laboratories in Cincinnati, Ohio, an FDA registered testing facility specialising in disinfectant
efficacy testing

● Q Laboratories’ results have exceeded management expectations, having affirmed
the initial results from Swinburne University testing in Australia, while also successfully tested additional scenarios, including ceiling lights to kitchen countertop
cleaning

● Today’s results are now being provided to retail partners, who may now place their
orders for the balance of 2020, with 2021 stock orders expected mid-late Q4

● Regulatory compliance has been passed for Australia, New Zealand, the United States, the European Union and the United Kingdom, with Australia, NZ and the
United States markets slated for launch in early December 2020

● Buddy will hold an investor webinar on Monday 26 October 2020 at 11:00am AEST.

Ooh, is it a stretch to imagine the LIFX CLEAN lights become mandatory in some situations?
EG; commercial kitchens, bathrooms, lavatories and other common areas like staff rooms etc
Becoming mandatory would be a dream, however, without legislation, I think the take up will fairly impressive as it is.
:2twocents;)
 
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frugal.rock said:
ASX MARKET RELEASE
LIFX Clean Passes U.S. Testing, Ready for Retailer Orders; Webinar

SUMMARY

● LIFX Clean has passed its United States efficacy testing, conducted by Q Laboratories in Cincinnati, Ohio, an FDA registered testing facility specialising in disinfectant
efficacy testing

● Q Laboratories’ results have exceeded management expectations, having affirmed
the initial results from Swinburne University testing in Australia, while also successfully tested additional scenarios, including ceiling lights to kitchen countertop
cleaning

● Today’s results are now being provided to retail partners, who may now place their
orders for the balance of 2020, with 2021 stock orders expected mid-late Q4

● Regulatory compliance has been passed for Australia, New Zealand, the United States, the European Union and the United Kingdom, with Australia, NZ and the
United States markets slated for launch in early December 2020

● Buddy will hold an investor webinar on Monday 26 October 2020 at 11:00am AEST.

Ooh, is it a stretch to imagine the LIFX CLEAN lights become mandatory in some situations?
EG; commercial kitchens, bathrooms, lavatories and other common areas like staff rooms etc
Becoming mandatory would be a dream, however, without legislation, I think the take up will fairly impressive as it is.
:2twocents;)
Click to expand...
Well it is now you've jinxed it :p
 
jbocker said:
Hmmm that is feasible particularly with undercounter lighting for food displays. I could imagine meat, bakery, and small goods displays and cabinetry having CLEAN lights as a future health requirement, now that such is available.
Click to expand...
Good one from the poet on POETS day... (piss off early, tomorrow's Saturday)

up-here-for-thinking-down-there-for-dancing.jpg
 
ASX MARKET RELEASE
Buddy Technologies Limited – September Quarterly 4C Review
(Q1FY21) 30 October 2020 – Adelaide, South Australia

Buddy Technologies Limited (Company) (ASX:BUD), a leading provider of solutions for making
spaces smarter, has today released its Quarterly Appendix 4C filing for the September 2020 quarter (Q1FY21).

SUMMARY
● Customer revenues: A$7.7 million for the quarter (up 43% over the prior quarter, and down 2% from the prior year

o Not including an additional A$1.7 million of government rebates and
subsidies (up from A$27k in the year-ago quarter, and A$1.1 million last quarter)

● Customer cash receipts: A$5.6 million for the quarter (down 13% from the prior year and down 19% from the prior quarter)

o Not including an additional A$1.6 million of government rebates and
subsidies (up from A$27k in the year-ago quarter and $1.1 million last quarter)

● Adjusted EBITDA: positive A$32k for the quarter (compared to negative A$2.9 million for the year-ago quarter and negative A$1.0 million last quarter)

o Our first positive adjusted EBITDA quarter

● Net cash change in quarter: increase of A$105k

● Cash on hand at 30 September 2020 totalled A$2.6 million, trade receivables totalled A$4.6 million and inventories totalled A$2.3 million

o As of 30 September 2020, the Company had utilised none of its trade finance facility and A$2.8 million of its inventory/PO finance facility.

● Major milestones

o First EBITDA positive quarter for the Company

o Most EBITDA positive month for the Company (September)

o The Company sold its 3 millionth smart light during the quarter; and

o During Q2FY21, the Company will pass A$200 million in gross revenues from smart light sales dating back to the first Kickstarter light sold in late 2013.

Currently on a trading halt.
 
Never like to hear those words "legal proceeding" in a Company announcement, especially when it involves one of their finance lenders CST Capital.

I see that they have also arranged further loans from Luminous Wide Ltd ($10 million) and a further $20 million from PFG (San Francisco)

Reading between the lines, Buddy and CST have the craps with each other:mad:
 
barney said:
Never like to hear those words "legal proceeding" in a Company announcement, especially when it involves one of their finance lenders CST Capital.

I see that they have also arranged further loans from Luminous Wide Ltd ($10 million) and a further $20 million from PFG (San Francisco)

Reading between the lines, Buddy and CST have the craps with each other:mad:
Click to expand...
You've got the eyes on the ball @barney. In terms of what they are trying to achieve, the company looks interesting. But in terms of how they are structuring their finances, there is some concern as you have said :cautious:
 
The whole financing thing is a bit confusing.
The agreement from the announcment 5th May, was originally to be for a period of 24 months.
Screen cap from 5th May announcement.

Flexible Structure.jpg

On the 7th September announcment, being the termination notice, was this paragraph,

SHARES NOT ISSUED.jpg

So, have I got this right?
This was a backup facility organised in the shitestorm of covid panic, they never used it, they could pause or terminate with notice without being subject to termination fees.

They have now secured a "better deal".

I don't think any legal proceedings will be from Buddy against CST, probably the other way round.

Certainly hope Buddy has their i's dotted and T's crossed, however, it would be foolish to start legal proceedings without a case...
From where I'm standing, it seems to be a case of sour grapes and a final "good riddance" payout may need to occur, unless it's a typcial case of "sue first, ask questions later" standard US legal mentality.

I guess the good thing at the moment, was the apparent support of the top 20 shareholders as indicated in the 7th September announcement, AND, the products rolling out, (and indeed, selling out) through popular channels such as Amazon etc.
Onwards & upwards. Cheers.
 
frugal.rock said:
The whole financing thing is a bit confusing.
The agreement from the announcment 5th May, was originally to be for a period of 24 months.
Screen cap from 5th May announcement.

View attachment 114191
On the 7th September announcment, being the termination notice, was this paragraph,

View attachment 114192
So, have I got this right?
This was a backup facility organised in the shitestorm of covid panic, they never used it, they could pause or terminate with notice without being subject to termination fees.

They have now secured a "better deal".

I don't think any legal proceedings will be from Buddy against CST, probably the other way round.

Certainly hope Buddy has their i's dotted and T's crossed, however, it would be foolish to start legal proceedings without a case...
From where I'm standing, it seems to be a case of sour grapes and a final "good riddance" payout may need to occur, unless it's a typcial case of "sue first, ask questions later" standard US legal mentality.

I guess the good thing at the moment, was the apparent support of the top 20 shareholders as indicated in the 7th September announcement, AND, the products rolling out, (and indeed, selling out) through popular channels such as Amazon etc.
Onwards & upwards. Cheers.
Click to expand...


Appreciate the insight, had no idea what the case was looking like.
 
frugal.rock said:
Certainly hope Buddy has their i's dotted and T's crossed, however, it would be foolish to start legal proceedings without a case... From where I'm standing, it seems to be a case of sour grapes and a final "good riddance" payout may need to occur, unless it's a typcial case of "sue first, ask questions later" standard US legal mentality.
Click to expand...

I'm no legal dude, but reading through the paperwork, there is obviously some conjecture over the meaning of the wording in the initial "contract"

BUD issued Collateral shares (5th May) with regard to the contract (below) which is kind of saying it's a goer.

Purpose of the issue Comprises the following 3 proposed issues of securities under the Share Purchase Agreement dated 29 April 2020 between BUD and CST Investments Fund. -

To satisfy the Collateral Shares obligation. -
To satisfy the Facility's Tranche 1 Shares obligation. -
To satisfy the Facility Fee Shares obligation. Pricing information is contained in Part 7F of this form.

But then they didn't draw on the facility. They had a 90 day window to pause or terminate but the Ann. on 7th September was over 90 days

From the ann. 5May

7. Fees - CST will be entitled to receive, as a fee for the provision of the Facility, the following:

a. A$200,000 in cash, payable over the first eight (8) tranches and offset via funds advanced;

b. A$200,000 in Shares, in the following two tranches: i. such number of Shares equivalent to A$100,000, based on the 5-day VWAP prior to the closing of the first tranche under the Company’s ASX Listing Rule 7.1 capacity; and ii. subject to the Company obtaining shareholder approval (and provided the SPA is not terminated within 90 days following execution of the SPA), within 90 days following the execution of the SPA, such number of Shares equivalent to A$100,000, based on the 5-day VWAP prior to the date of issue; a

I suspect the boys might owe CST a few bob in fees at least ... I'd say it will settle out of court. Pointless dragging it on at more expense.:greedy:
 
barney said:
I suspect the boys might owe CST a few bob in fees at least ... I'd say it will settle out of court. Pointless dragging it on at more expense.
Click to expand...
Sounds about right Barney.
Bit of a storm in a teacup /non issue situation really.
Financial leaches want a quick suck...

All said and done, was good to see the backside didn't fall out of the SP.
Usual weak hands dumping a bit, but I am sure they will regret that later... cheers.
 
wabullfrog said:
Aaannddd straight back into a trading halt, this time for another capital raise. Wondering about the competency of management now.

Click to expand...
Oh, not again !

Shareholders may be wary about raise after raise !

It's one thing supporting upcoming companies, but shouldn't they be very frugal with that money that people worked their AZZ off to save up and give to some company hopeful ? How they are burning through so much anyway, unless using a few bundles on the fireplace when they run out of firewood :cautious:

But then again you can't use Aussie money for firewood or toilet paper, it's got to be exchanged in US greenbacks first to do that :D
 
aus_trader said:
Shareholders may be wary about raise after raise !
Click to expand...
I don't think there has been raise after raise?... or am I missing something?
In any case, if there was, Buddy is at a pivotal upscale growth point, a point where it's fair to put out the hand to investors, IMO.
To my knowledge though, funds have largely come from arranged financial borrowings, thus the CST saga as they missed out on a piece of the pie.

The recent cap raise was actually quite impressive being over and done with in 2 days of trading halt rather than the 4 requested. It's almost like sophisticated and institutional were throwing fistfuls trying to get in.
Don't blame them at $0.048 per share, as they are likely to double again within 6 months, in my opinion.
 
A non market sensitive (apparently) announcement today.
ASX MARKET RELEASE
LIFX to be Stocked in U.S. Target Stores; Holiday Inventory Update

SUMMARY
● LIFX announces its range of smart lights will be sold at Target (NYSE:TGT) stores in the United States, becoming only the second smart light brand sold there

● First orders are in for stock to be sold via Target’s online channels this holiday, with retail stores assorting LIFX stock in 2021

● Target has just reported e-commerce sales growth of 155% quarter on quarter, as the United States retail customer increasingly looks to online shopping amid the
COVID-19 pandemic

● Target has approximately 1,900 stores in the U.S., lifting 2021 expected bricks and mortar retail assortment in that market to over 5,000 stores

● Inventory has been flowing from China to distribution channels in the U.S., with Lowe’s, Best Buy and other retail locations to be fully stocked for holiday.
 
I can see there being a big hype cycle if the news gets a hold of this and runs a fluff piece or something.
 

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