Meet ‘Riot Blockchain’ – And Grab A Blimpie While You’re Here!

Here’s a good lookin’ chart for you!…

Bioptix

So that’s “Bioptix.” Or actually, that was Bioptix, a maker of diagnostic machinery for the biotech industry. Now it’s Riot Blockchain Inc.

Now I want you to do ol’ Heisenberg a favor ok? And actually, you’ll be doing yourself a favor too, because to the extent you enjoy comic relief on a slow Friday, this should help. Read the following brief history of Bioptix from the company’s amended S-3:

We hold an exclusive license agreement with Washington University (“WU”) in St. Louis which granted us an exclusive license and right to sublicense its technology for veterinary products worldwide, subject to certain exceptions. In July 2012, we granted Ceva Sante Animale S.A. (“Ceva”) an exclusive royalty-bearing license to our intellectual property and other assets, relating to recombinant single chain reproductive hormone technology for use in non-human mammals.  This license includes a sublicense of the technology licensed to us by WU.  Ceva continues to advance development of the bovine rFSH product and cumulative cash payments received to date by us from Ceva have been approximately $2 million.

On February 25, 2016, we completed the sale of our corporate headquarters, land and building, to a third party at a purchase price of $4,053,000.  The sale generated approximately $1.8 million in net cash after expenses and mortgage payoffs. In addition to agreeing to the sale, we rented back space in the building under short-term lease agreements that provide storage space required for our current level of operations.

Through our wholly owned subsidiary, BiOptix Diagnostics, Inc. (“BDI”), which we acquired in September 2016, we have developed a proprietary Enhanced Surface Plasmon Resonance technology platform for the detection of molecular interactions.  We acquired a Surface Plasma Resonance (SPR) platform which seeks to combine high sensitivity with microarray detection capability to allow researchers to understand whether their target molecules have functionality against the disease targeted. SPR is an advanced and highly sensitive optical technology that can measure refractive index changes on a sensor chip’s gold surface due to a change in mass that occurs during a binding event. This change can be used to monitor biological interactions such as the concentration of target molecules, kinetic rates and affinity constants.

BDI is a life science tools company that provides an affordable solution for drug discovery scientists who require label-free, real-time detection of bio-molecular interactions.  BDI manufactures, sells and services instruments and consumables to pharmaceutical researchers allowing them to develop new drugs faster than by using older technologies such as enzyme-linked immunosorbent assay or “ELISA”. BDI was originally established with technology developed in conjunction with Dr. John L. “Jan” Hall, Adjoint Professor, JILA (University of Colorado), who shared the Nobel Prize for Physics in 2005 for his work on laser-based precision spectroscopy and the optical frequency comb technique. SPR is the core of the BDI products and intellectual property.  Dr. Hall, in conjunction with the scientists at BDI, created a common path interferometer that was commercialized to become the 404pi instrument.

When it was acquired by us in September 2016, BDI was in the initial stages of rolling out its first commercial product, the 404pi system. BDI’s initial revenue was generated in 2014 with first sales to customers including sales to leading academic researchers and biotech companies. BDI did not experience any significant seasonality to its business and provided normal terms to its customers, generally 30-60 days, net. Currently there is no back-log of orders.

Following the September 2016 acquisition of BDI, we began hiring sales, marketing and operational employees, adding a total of eight employees to the twelve hired in connection with the acquisition.

The BDI products include a reader instrument (404pi) and the consumable test products consisting of test chips (cassettes) and packaging. The instrument is assembled in-house using primarily off the shelf parts and certain customized components. Consumable test product components are manufactured at the BDI facility using certain sub-assemblies processed by third-party contractors. Raw materials and certain sub-components are acquired from a number of suppliers.

Effective January 14, 2017, the Company adopted a plan to exit the business of BDI and commenced a significant reduction in the workforce. The decision to adopt this plan was made following an evaluation by the Company’s Board of Directors in January 2017, of the estimated results of operations projected during the near to mid-term period for BDI, including consideration of product development required and updated sales forecasts, and estimated additional cash resources required. Accordingly, the historical results of BDI have been classified as discontinued operations for all periods presented.

Following the recent decision to exit the BDI business, we have begun evaluating potential strategic alternatives. We expect, in the near term, to establish the primary criteria we will consider as we evaluate our next steps and strategic path forward with the goal of maximizing value for our stockholders. Additionally, we will focus on attempting to locate an acquirer or partner for the BDI operations as well as continuing to attempt to locate an interested party for the appendicitis assets.

Ok, so as far as I can tell (and please to let me know if your interpretation is different), this company had a license for veterinary products, licensed that license to somebody else in exchange for a royalty, sold its corporate headquarters, immediately rented a closet in the back of the same building, bought another company, developed “a proprietary Enhanced Surface Plasmon Resonance technology platform,” hired a bunch of people to sell it, fired all of those people four months later, then decided to “exit the business,” and try something else.

Well, you’ll never guess what that “something else” turned out to be. Here’s an excerpt from an 8K they filed earlier this week:

On September 29, 2017, Bioptix, Inc. (the “Company”) entered into a series of agreements including a Subscription Agreement and Amended and Restated Unanimous Shareholder Agreement in connection with the purchase of $3,000,000 of units of goNumerical Ltd. (“goNumerical”), a leading Canadian Blockchain company known as Coinsquare Ltd., one of Canada’s leading exchanges for trading digital currencies.  Each unit consists of (i) one share of goNumerical and (ii) a purchase warrant exercisable into such number of shares of stock at the exercise price and with such other terms and conditions as are acceptable to the Company The news release announcing the strategic investment is attached as Exhibit 99.1.

So here’s a company which, just five years ago, was licensing “intellectual property relating to recombinant single chain reproductive hormone technology for use in non-human mammals,” and which, just 19 months ago, sold its headquarters only to rent space in the back and try to build another business based on “Enhanced Surface Plasmon Resonance technology,” which has now decided to rename itself “Riot Blockchain” and go into the cryptocurrency business.

Riot

But wait, you haven’t even heard the punchline. See the address listed on the 8K?

834-F South Perry Street, Suite 443
Castle Rock, CO
As Bloomberg notes, that’s “identical to the address of a shipping and mailbox rental company called PostalAnnex.”
Here’s an actual picture:
Blimpie
Asked if she cared to explain that, Karen Chase, a spokeswoman for Bioptix, told Bloomberg this:
We use that address for mail [but we operate] a small office in the area.
It wasn’t immediately clear whether that “small office” was in the back of the Blimpie shop next door.
Nothing further.
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2 thoughts on “Meet ‘Riot Blockchain’ – And Grab A Blimpie While You’re Here!

  1. But wait, there’s more!

    On October 2, 2017, the Company’s Board of Directors approved a cash dividend pursuant to which, the holders of the Company’s common stock, no par value per share (the “Common Stock”), and Series A Convertible Preferred Stock, no par value per share (the “Series A Preferred Stock”), as of the close of business on October 13, 2017 shall receive $1.00 for each share of Common Stock, including each share of Common Stock that would be issuable upon conversion of the Series A Preferred Stock, on an as converted basis…….
    https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001167419&owner=exclude&count=40&hidefilings=0

    ….. correction to certain information in an interview by our Chief Executive Officer published in Bloomberg Technology on October 4, 2017 in connection with Registrant’s life sciences segment (the “original interview”). The original interview reported that the Registrant has already shuttered operations, and is selling its remaining patents and intellectual property to a private company in the diagnostics industry. The correct statement is that the company has an Exclusive License Agreement (the “License Agreement”) with Ceva Santé Animale S.A. (“Licensee”), providing an exclusive worldwide royalty-bearing license, until December 31, 2028, to develop, seek regulatory approval for and offer to sell, market, distribute, import and export luteinizing hormone (“LH”) and/or follicle-stimulating hormone (“FSH”) products for cattle, equine and swine for the assistance and facilitation of reproduction. The License Agreement provides for royalties, at low double digit rates,……
    https://www.sec.gov/Archives/edgar/data/1167419/000107997317000573/bioptix_8k.htm

    And keep in mind Warren Buffett’s poker quote:
    https://www.sec.gov/Archives/edgar/data/1167419/000107997317000573/0001079973-17-000573-index.htm
    (slide 23)

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