BPH sharpens up brain monitoring & medical marijuana efforts

By Zoe Gross. Published at Jan 9, 2019, in ASX Biotechs

ASX small cap, BPH Energy (ASX:BPH), has released a positive update on its progress across its diversified medtech and biotech operations.

BPH has now raised $982,504 from the rights issue announced back in October, of which $661,070 has been through shortfall applications. Together with applications received under the offset the rights issue, applications now total $1,141,040.

With this capital behind it, BPH is well-placed to implement its corporate strategy.

The company is busy progressing the commercialisation of its Cortical Dynamics Brain Anaesthesia Response (BAR Monitor or BARM). The device measures a patient’s brain electrical activity (EEG) to indicate the response to drugs administered during surgery and is the only monitor to use EEG analysis based on a model of brain electrical activity.

The BAR monitor is the core product of Cortical Dynamics, of which BPH holds a 4.47% interest, as well as a right to convert debt and increase its shareholding in the group, which could take its stake to approximately 15.7%.

In early November, Cortical CTO Louis Delacretaz attended the Korea Anaesthesia 2018 congress in Seoul.

During the congress, many anaesthetists showed strong interest in the advantages of the BARM, as compared to other monitors.

Benefits to patients include reduced risk of waking up or having recollections of surgical procedures or dreams during the surgical procedure; reduced risk of receiving too high a dose of anaesthetic agent, which can lead to post-operative nausea and discomfort, or permanent injury or death in the most severe cases; and significantly improved outcomes, particularly for patients at high risk of awareness.

Moreover, the monitor's benefits to anaesthetists include it facilitating the use of the optimal dose of anaesthetic agent and the delivery of higher quality and more reliable service to hospitals and patients. It also reduces the risk of litigation due to patients experiencing awareness during surgery.

Prior to the congress start, Delacretaz attended a series of meetings organised by Austrade with anaesthesiology professors from Korean universities.

These professors have been actively seeking a substitute for their current monitors, with strong concerns about the credibility of the current devices’ readings. They were very interested in a means to determine patients’ pain levels — and, subsequently, in trialling the BARM as a substitute device.

Cortical Dynamics’ Korean distributor, Globaluck, also introduced Delacretaz to a number of heads of leading teaching and research hospitals while in Korea.

Cortical has now engaged an international testing and certification organisation to test and certify the BARM to comply with the Korean certification process. The assessment also includes the latest medical safety standard deviations for Australia, New Zealand, European Union and the USA.

Cortical has also engaged Enable Funding to undertake a capital raising of up to $2 million at a price of 10 cents per share, and is also in discussions with other parties on further funding.

Medical cannabis

As revealed in October, BPH also plans to pursue a complementary strategy of investing in the burgeoning medical cannabis sector.

This buzzing space is showing significant growth with current developments boosting its viability. As reported by EverBlu research, legislative changes show rapid acceptance and growth.

In the last fortnight, Thailand, Israel and South Africa have all made considerable changes to laws relating to the exportation and legalisation of the drug for medical purposes.

In the US, the Food and Drug Administration (FDA) is looking for pathways to legalise the sale of CBD (cannabidiol) oil and other cannabis-based compounds in food and beverages - a move that could remove one of the last remaining legal hurdles for companies hoping to sell these kinds of products across state lines.

New Zealand has also legalised medical marijuana, and is set to hold a binding referendum on personal weed use at the 2020 general election.

In one of the most unexpected pot-related moves of 2018, South Korea's government has approved the legalisation of medical marijuana as soon as early 2019.

BPH is looking to tap a fertile market here. According to a report by Global market Insights, the global medical cannabis industry alone is projected to surpass US$55 billion (A$77.4B) by 2024.

View Our Investment Portfolios

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!