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Biological sampling services group Bluechiip (ASX: BCT) has been placed into voluntary administration after the board determined that the company is insolvent, despite a short-term capital boost of nearly $1 million from shareholders announced in December.
The appointment, which follows a five-month ASX-imposed suspension of Bluechiip’s shares, will allow the company to pursue either a sale of the business or a recapitalisation.
The Melbourne-based Bluechiip, which describes itself as a leader in the development of advanced sample management solutions for harsh environments, has appointed Manuel Hanna, of Romanis Cant, as administrator after the company failed to find a strategic investor or buyer of the business.
“Following this process, the directors resolved that the company is insolvent or likely to become insolvent,” says a statement from the administrator.
“The administrator will seek opportunities to sell the company’s assets or otherwise pursue a recapitalisation of the company via a deed of company arrangement.”
The administrator, who has not been appointed to any of Bluechiip’s subsidiaries, says he will be undertaking a national advertising campaign to attract potential buyers and investors for the business.
Bluechiip finds itself under administration despite a promising development in December when the company announced it had secured a licence, development and supply agreement with US-based BioLife Solutions – a deal that could be initially worth up to US$750,000 ($1.17 million) for the company.
“The BioLife deal announced in December 2024 is a very important development and this partnership and associated sales revenue will be grown as far as possible in calendar year 2025,” Bluechiip said in a market update on 30 January this year.
“We expect CY25 to be a pivotal year for the company as it focuses on rolling out its products, in particular for the recently signed BioLife deal and expanding within the existing large customer base and with new customers – both large and small – as well.”
Bluechiip says it is trusted by the world's leading pharmaceutical companies and research institutes, highlighting that its Advanced Sample Management Solution is "the only system providing sample temperature with ID in cryogenic environments to deliver confidence in every sample”.
The appointment of an administrator comes after a sustained effort to stabilise the business with a mid-year strategic review leading to cost-cutting across Bluechiip’s operations to stem its losses.
During the strategic review period, the company also received $996,000 from shareholders including loan facilities secured with board members totalling $281,000.
The first meeting of Bluechiip’s creditors, which will include the board members who loaned the company funds, is scheduled to be held on Thursday, 27 March 2025.
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