OptiBiotix Health plc (LON:OPTI), a life sciences business developing compounds to tackle obesity, high cholesterol, diabetes and skin care, announced today that it has made an increase in its investment in its majority owned subsidiary The Health Weight Loss Company Limited (“THWLC”).
Under the terms of the agreement OptiBiotix has made an investment of £75,000 to provide working capital to support marketing and an increase in stock levels. This investment increases OptiBiotix’s shareholding in THWLC to 64%.
OptiBiotix announced on 26 July 2016 that it had acquired a majority shareholding in THWLC to incubate new technological solutions and develop wider product applications in weight management. THWLC produces GoFigure® products containing SlimBiome® which incorporates OptiBiotix’s patented combination of natural ingredients developed by experts to support weight loss (see www.GoFigureDiet.com). Since investment:-
· THWLC has gained over 1,000 customers, retail listings in over 80 stores, and 4 distributorships in the UK and Iceland
· Sales have outperformed expectations with GoFigure® products receiving excellent customer reviews on Amazon and customer surveys reporting average weight loss of 2 ½lbs per week
· GoFigure® was voted finalist in “Best New Health & Nutrition” at the 2016 European Natural & Organic Awards
· As announced on 13 December 2016 GoFigure® products have attracted corporate interest leading to an agreement with a major multinational to develop food and Over The Counter (“OTC”) products containing OptiBiotix’s SlimBiome® technology for the Asian market,
This increased investment will provide THWLC with the resources to build on its early success to:-
1. Invest in product marketing at key seasonal periods
2. Provide the marketing support required for listing in major retail outlets
3. Increase the number of retail listings, particularly with major retail outlets, selling GoFigure® products both within the UK and internationally
Stephen O’Hara, CEO of OptiBiotix Health Plc, commented: “We are really pleased with the progress of THWLC and the rapid sales growth of its GoFigure® products which have shown the unique ability of our SlimBiome® technology to help customers lose weight without feeling hungry, leading to easier and more successful dieting. Our belief in the potential of THWLC is demonstrated by this additional investment which provides funds to invest in marketing, to build stock levels to meet the seasonal demand for weight management products, and to support an increase in retail listings, particularly with major retail outlets. I am sure investors will recognise that given the early success of GoFigure® products, which has been achieved without any marketing, there is potential for strong sales growth of GoFigure® products over the next few years and substantial value enhancement.”