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Optibiotix - 2 announcements, this is tidying up ahead of big news: buy

By HotStockRockets | Monday 9 January 2017

Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

There are some announcements that an AIM listed company has to make as they are material but in terms of excitement we are talking paint dry. So you just clear the decks and announce them and when all the news is out you - hopefully - have something to announce which will get folks interested. And so it is with Optibiotix (OPTI).

And so last week we had the news that Per Rehne is to replace Jim Laird as Commercial director. Per will join the board once Nomad approval granted. He seems to have a good CV and so all looks good here.

Prior to that we had news that Optibiotix had invested £75,000 to increase its stake in The Health Weight Loss Company Limited ("THWLC") to 64% . The cash will accelerate its roll-out. It is THWLC that is producing Slimbiome and Optibiotix notes that since July:

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,

That would of course be Tata although Optibiotix cannot say that publicly yet. When tata is outed as and folks start to appreciate the scale of actual revenues and potential revenues the re-rate will start. We do expect hard tangible big news within weeks.

The shares are now 60.5p-64p.

The stance is buy at up to 80p with a target to sell of 100p +

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