Quarterly Activities Report: Growth continues with commercialisation of CBD products

The company have announced an increase of 5.7% in sales from Q1 to Q2 FY19/20 as well as a $832k binding purchase which points to continued top line growth. MediCabilis™ prescriptions appear to have slowed from 1043 in Q1 vs 799 in Q2 (1842 in H1 FY2019/2020 = 1043 in Q1 + 799 in Q2).

BOD Australia have spent ~A$1.4m in product manufacturing and operating costs over the past 6 months, ~A$940k of which has occurred in the December 2019 quarter, which suggests the company is preparing for continued sales growth. The company also remains well capitalised by retaining a strong cash balance of A$8.1m in cash as of 31st December 2019.

Overall we believe that BOD Australia is well placed to continue growing sales through a combination of channels. This includes launching new products into additional territories through its H&H partnership which has been flagged by management to occur this quarter. We think BOD Australia is likely to continue unlocking additional territories from this partnership as they have been able to recently demonstrate a successful launch into the U.K. market. The introduction of additional prescription products have also been flagged by the company and are expected to progress in the coming months.