110203 Bluechiip Ltd - Company...

Bluechiip Ltd - Company PresentationFebruary 2011

Forward Looking Statement

This presentation includes forward-looking statements that are subject to risks and uncertainties. Such statements involve known and unknown risks and important factors that may cause the actual results, performance and achievements of bluechiip to be materially different from the statements in this presentation.

Actual results could differ materially depending on factors such as the availability of resources, the results of proof-of-concept studies and pilot trials, the timing and effects of regulatory actions, the strength of competition and the effectiveness of patent protection.

Additional information regarding risks and uncertainties is set out in the company’s Prospectus dated 9 November 2010 which is available from bluechiip on request or via the company website www.bluechiip.com.

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Executive Summary

• bluechiip is a groundbreaking asset tracking solution based around a chip which offers unique features over traditional tracking methods

• Raise up to $6.0M via an IPO and listing on ASX• Funds will be used to commence volume production and to facilitate

product sales to initial customers in biobanking - a rapidly growing sector of the global healthcare industry

• Numerous opportunities exist in other healthcare applications where high value samples and medical devices require secure and efficient tracking

• Applications also exist in other markets including security, defense, cold-chain logistics/supply chain and industrial

• Strong IP portfolio• Experienced and focused board and management

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TIME(Annual Special Issue

- March 2009)

Biobanks: Saving your parts

1 of the “10 Ideas Changing the

World Right Now”

bluechiip - Tracking Solution for Growing Biobank Market

• Biobanks are a repository that collect, process, store and distribute biospecimens and related data

• Biospecimens include tissue samples, tumor cells, DNA, IVF, cord blood, stem cells and other human and animal tissue or biologic material

• Growth of biobanks worldwide has been exponential - recent studies estimate that hundreds of millions of samples are stored in U.S. biobanks and >1B are stored worldwide (307 million tissue specimens under storage in USA in 1999, 20M+ new samples p.a.)

• Estimated sales of US biobank resources and services $7.9B in 2009 > $19.1B in 2015

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Current Practice - Where is it?

“Every year, billions of dollars worth of research hinges on scientists’ ability to tap industrial quantities of cells and tissue. While technology for decoding inner workings of life is advancing dramatically, protocols for collecting and storing specimens of human flesh have barely evolved in decades”

Source: Libraries of Flesh: The Sorry State of Human Tissue Storage, Steve Silberman – WIRED, June 2010

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Highly manual/labor-intensiveLabels/barcodes can’t offer a digital tracking solution for growing number of HIGH VALUE and often IRREPLACABLE samples

Photograph by Andrew Tingle

bluechiip - Redefining the Future Practice of Biobanks

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• bluechiip is a totally integrated tracking and management solution from identification, tracking, retrieving and bio storage, offering process assurance, operational certainty in low temperature environments together with peace of mind for both biobanks and their customers

• bluechiip represents new wave of technology that will redefine future ‘best practice’ in ‘Standard Operating Procedures (SOP’s) of biobanks

• Provides an electronic audit trail

…has it been bluechiiped?

bluechiip - Key Milestones

COMPLETEDValidation of technology performed (ongoing process)Successful industry pilot trials performedCommercial partnerships for development and manufacturing securedTooling up for high volume commercial production commencedEndorsement from OEMs, distributors, end-users and Key-Opinion-Leaders (KOL’s) achievedSecured valuable IP portfolio

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EXPECTED• Sales revenue expected in 2011• Further IP to be granted and new patent applications to be filed• Adding new product functions• Entering new markets

Key Features of bluechiip

Unique, patented technology that allows high volumespecimen tracking and temperature monitoring at low storage temperatures (-80°C to -196°C)

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survives extreme temperature conditionswide environmental tolerance, including frost resistant can sense and record temperature historysecure and difficult to cloneeasily moulded into consumablesimmune to gamma radiation (used for sterilization)

Benefits of bluechiip

Improves operating efficiency and enhances sample securityMaintains integrity of sample - read sample data while stored within low-temperatures - reduces sample handling and breakageSingle tag tracks both ID and temperatureSimplifies and speeds up sample retrievalReduces legal exposure, cost of insuranceImproves operator safety (OH&S)

Today’s environment is all about ethical accountability, risk management, regulation and assurance to customers

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Limitations of Current Devices

• Hand-written and pre-printed labels• Linear and 2D barcodes • Radio Frequency Identification (RFID)

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Applications for bluechiip


Current focus -biobanking

Future opportunities within and outside healthcare

Initial Applications: Biobanking

• Laboratory consumables stored in low temperature environments• Tubes and vials with integrated bluechiip tags• Biobanks and Biorepositories

> Stem cells – embryonic (umbilical cord blood), adult> Tissue i.e. cancer> Cell lines (pharmaceutical)> IVF (egg, sperm, embryos)


bluechiip – Product Portfolio

• Tags• Tubes/vials• Readers• Retriever Wand• Software• Services


Future bluechiip Applications


Other Healthcare Markets Other Market Verticals

PathologyClinical trials PharmaceuticalSeed banksForensicsBlood productsDiagnosticsResearchBiological sensingDNAAllograft i.e. heart valvesMedical waste

SecurityDefense Cold chain logistics/supply chainCourier companiesAerospace/aviationIndustrialManufacturingOther….

bluechiip’s experienced Board & Management

Brett Schwarz BComm, CAManaging Director & Chief Executive Officer (CEO)

• Co-founder of bluechiip and instrumental in building the company since inception

• 20 years experience in chartered accounting and consulting industries prior to foundingbluechiip

Dr Jason Chaffey BSc, PhDChief Technical Officer (CTO)

• Actively involved in MEMS technology for over 10 years

• Extensive experience in government research and university research laboratories

Joe Baini BSc, Post Grad Dip Bus ManagementExecutive Director & Exec. VP - Business Development

• 20 years experience in the pharmaceuticalindustry, focused on commercializationmarketing and sales

• Responsibilities included partnership, governmentand licensing negotiations

• Former General Manager of Gilead SciencesAustralia, New Zealand and Asia


Iain Kirkwood MA (Hons) Oxon, FCPA, CA, MAICDNon-Executive Chairman

• Over 35 years experience including with listed and healthcare companies

• Former senior executive roles with FH Faulding,Clinuvel Pharmaceuticals, Woodside, Santos andPilkington plc

• Non-executive director of 3 ASX listed companies

Larry Lopez BSc, Bus Admin, Grad PCBS, MAICDNon-Executive Director

• Over 25 years financing technology companies,including commercial banking, investmentbanking, funds management and venture capital

• Former senior executive at Silicon Valley Bank(SVB) Financial Group, global leader in financialservices for innovative companies and investors

Lee Mitchell BA, LLMCompany Secretary

• Former partner, Corporate group, MiddletonsLawyers

• Experienced in ASX-listed company procedures

Global Partnerships (technology/commercial validation)

Development/Manufacturing Partners• STMicroelectronics – chips/tags (HIGH PRIORITY global project)

– HQ Switzerland, listed NYSE (STM) – Rev >US$10B, market cap US$8B, >50k FTE’s

– One of world’s largest semiconductor and MEMS companies/#1 MEMS foundry

– Will manufacture commercial chips in high volumes– Project commenced end of May 2010 – Development & License Agreement executed September 2010

• SignalCraft - reader hardware, including interrogator– Wireless communication design house

Distribution/Channel Partners• Ziath Inc. – Agency & Distribution Agreement executed April 2010• Active discussion with other major suppliers


Offer and Indicative Timetable

• IPO of up to 24 million shares at $0.25 per share to raise $6.0M,with a minimum capital raising of $3.0M

• Up to 6 million Options issued free to new shareholders on basisof 1 unlisted option for every 4 offer shares issued

• Options exercisable at $0.30 and expiring on or before 31 December 2012


28 February 2011 *Closing date of Offer

24 December 2010Lodgement of Supplementary Prospectus with ASIC

Lodge of prospectus with ASIC 9 November 2010

Offer Securities expected to be issued 7 March 2011 *

Offer Shares begin trading on ASX 14 March 2011 *

* These dates are subject to change and are indicative only. The Company reserves the right to amend this indicative timetable.

Capital Structure

Indicative capital and ownership structure of Company at IPO assuming a maximum subscription will comprise of:


Shareholder Shares Options Ownership Equity Valuation

Existing Shareholders*

66.3M 4.4M 73.4% $16.6M

New shareholders 24.0M 26.6% $6.0M

New Options 6.0M

Total 90.3M 10.4M 100.0% $22.6M

* Post IPO voluntary & ASX escrow for co-founders (~15%) and chairman (~5%)

Use of Funds


$3.0M capital raising $6.0M capital raising

• Purchase laser programming equipment

• Tooling up for commercial production

• Production of chips and readers for customers

• Working capital for 12 months• Support for existing and future

product development in initial market of biobanking

• Maintain existing IPO portfolio and expand with new filings

• More aggressively expand product development beyond initial market focus of healthcare

• More aggressively market product

• More aggressively collaborate and license with corporate and strategic partners

• Increase human resources and thus execution capability

• Accelerate global expansion

Use of Funds


Minimum ($000’s)

Maximum ($000’s)

Salaries, directors fees and on-costs $350 $887

Product development costs $537 $1,955

Fixed asset acquisitions (laser, other) $1,385 $1,385

Patent costs $80 $100

G&A/working capital including marketing/BD $150 $800

Costs of IPO $498 $873

TOTAL BUDGETED FUNDS APPLIED $3,000 $6,000

Integrated system solution


Single-vial reader

Retriever (wand reader)

bluechiip tags in tubes/vialsMatchbox

Integrated system solution


Interrogator

Wand reader Rack reader

Multi-vial reader Evaluation packs/starter kits

Validation of bluechiip

Successful proof-of-concept and pilot trial with some leading healthcare institutions in Australia


Thermal cycling –200+ cycles from liquid nitrogen to room temperatureContinuous cryogenic storage in Liquid Nitrogen for 650+ daysTags read in excess of 1M times with no failuresGamma irradiation to 500kGy (~12 times max. standard levels used)Polypropylene encapsulation (plastic injection molding)

Pilot Trials - Completed / Planned

• Stem cells in cryogenic storage> Leading IVF lab/clinic (COMPLETED)> Leading Cancer Centre in treatment, research and education

(COMPLETED)> Leading private cord blood bank

• Pharmaceutical R&D> for high value, irreplaceable cell lines and compound

management> Trial discussions in process with leading pharma companies

• Biobank tracking> Leader in biospecimen repository services and cold chain

logistics

• Tissue banks> US medical research facility

In Australia and US


Strong IP Protection

• Established Freedom-to-Operate (FTO)• All IP owned by bluechiip • Use leading specialist IP firm Phillips Ormonde Fitzpatrick (POF)• Patent portfolio (10)

– 5 granted: US,UK and EU– 5 new patents in various application stages

• 2 trademarks granted in AU, 2 pending in US• IP strategy

– protect existing patents– build new IP with product advancements


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