Hot stock: Biolidics halts trading after shares climb 29.3%

Vivienne Tay
Published Mon, Jul 13, 2020 · 06:23 AM

CATALIST-LISTED Biolidics called for a trading halt pending an announcement on Monday after its shares jumped to an intraday high of S$0.53, up 29.3 per cent or S$0.12 as at 10.45am.

Prior to the trading halt, the counter was trading at S$0.52, up S$0.11 or 26.8 per cent as at 12.18pm, compared with last Thursday's closing price of S$0.41.

The company on Thursday night further clarified its scrapped deal with US virus test kit distributor Aytu BioScience, which saw the cancellation of an order of 500,000 test kits.

In response to the Singapore Exchange's queries, Biolidics clarified that the number of test kits was 500,100, comprising an initial test shipment delivery of 13,000 kits and a balance of 487,100 kits to be delivered at a later date to be agreed between Aytu and Biolidics.

Biolidics confirmed that it received full payment for the initial test shipment of 13,000 kits, which it has retained. The non-delivery of the remaining 487,100 kits did not breach any of the terms in the distribution agreement with Aytu and/or other agreements, Biolidics added.

Biolidics also explained why it did not enforce the binding commitment by Aytu to purchase the test kits, along with refunding the deposit paid for the 487,100 kits. It said it had considered various factors, including but not limited to, its ability to sell the test kits to other markets outside the US, as well as the increased competition in the US market for serology kits.


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Another crucial part in Biolidics' consideration for a full refund was the possibility that it may take a longer time to fulfil subsequent orders due to factors like the delivery lead time from the manufacturer, the speed at which the plant is able to manufacture the kits, availability of cargo space from freight forwarders, as well as global logistics, supply challenges arising from the Covid-19 pandemic.

Biolidics also believes there are "other business opportunities" which it may pursue with Aytu as a potential partner.

The company agreed to fully refund the deposit on the undelivered Covid-19 antibody test kits in view of the prospect of future collaboration with Aytu. The refund was also an effort to streamline resources to focus on Biolidics' development project with Aytu to jointly develop a new test kit.

Biolidics and Aytu have agreed to a mutual release of claims to maintain their long-term working relationship.


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