Bod Science (ASX: $BOD) operational and financial update

Bod Science Limited (ASX: $BOD) has accepted a Deed of Company Arrangement (DOCA) proposed by Biortica for a backdoor listing, as part of its operational and financial update for the quarter ended 30 June 2024. The company reported net cash from operating activities of $269k, with quarterly receipts from customers at $54k and the receipt of FY23 overseas R&D tax incentive of $364k.

Executive commentary on operational and financial updates

The second meeting of creditors under the Voluntary Administration process resulted in the approval of the DOCA proposal from Biortica. The DOCA has been executed, and Bod will remain in suspension throughout the deed administration process. Biortica has agreed to contribute $380,000 to a deed fund, and a backdoor listing is being pursued, subject to certain conditions. The company's net cash from operating activities increased by $266k compared to the previous quarter, primarily due to the receipt of the overseas R&D tax incentive. Quarterly receipts from customers decreased, mainly attributed to the company exiting its legacy Bioeffect business. Additionally, the company received funding from Biortica to cover operating expenses and made payments to related parties, including remuneration to a director.

Summary of Bod Science's operational and financial performance

Bod Science's acceptance of the DOCA proposal from Biortica marks a significant development, with plans for a backdoor listing and acquisition of Biortica's issued capital. The company reported an increase in net cash from operating activities, driven by the receipt of the overseas R&D tax incentive, although quarterly receipts from customers decreased. The company is finalizing a binding share purchase agreement with the ordinary shareholders of Biortica, subject to meeting conditions subsequent and re-compliance requirements with ASX Listing Rules. Shareholders can expect a meeting in August or September 2024 to vote on the resolutions detailed in Biortica's DOCA proposal. Bod Science remains focused on progressing research and development in cannabis-focused drug development and product innovation, aiming to deliver trusted products for patients and consumers, leveraging partnerships and collaborations with leading research organizations.