Bioxyne's response to ASX regarding market sensitive contract

Bioxyne Limited (ASX:BXN) has responded to ASX's aware letter dated 26 August 2024. The company confirmed that it considers the information regarding the supply agreement to be material and expects it to have a significant effect on the price or value of its securities. The supply agreement, signed on 25 July 2024, involves the manufacture and supply of pharmaceutical cannabis pastilles to one of Australia's largest cannabis companies, with a forecast minimum of $28 million in sales over a 24-month period.

Executive commentary on disclosure and compliance

The company stated that the customer requested confidentiality due to the commercial sensitivity of the supply contract for medicinal cannabis products and potential security concerns. Bioxyne highlighted that it waited to confirm the machinery's shipment and the receipt of purchase orders before making the announcement. The company emphasized that it had reasonable grounds for expecting the forecasted revenue based on the initial order, deposit payment, and agreed pricing for the 24-month period. Bioxyne also confirmed compliance with the Listing Rules and that the responses to ASX's questions were authorized by the Board.

Summary of ASX announcement and outlook

Bioxyne's response to ASX's aware letter addresses the disclosure of the market sensitive contract and the company's compliance with the Listing Rules. The supply agreement for pharmaceutical cannabis pastilles is expected to generate a forecast minimum of $28 million in sales over a 24-month period. The company's proactive approach to confirming the conditions precedent before the announcement demonstrates its commitment to compliance and transparency. Bioxyne's outlook appears positive, with the supply agreement contributing to its revenue forecast and market position in the pharmaceutical cannabis products sector.