eSense-Lab Ltd (ASX:ESE) has been active in a range of operations, progressing its research into the anti-viral nature of terpenes, and is targeting to achieve commercial sales within a short period of time.
During the quarter ended March 31, the company also continued to progress a number of other preliminary stage engagements with potential joint venture partners for the production of products using the company’s proprietary terpenes.
During the quarter, the company progressed joint venture agreements with SeaLaria’s red algae.
eSense still intends to progress joint venture opportunities with Wise Wine, Blue Science, and ANC, however, there were no material developments in respect of these opportunities during the quarter.
TRP-ENV against HCoV-OC43 corona strain virus
Under its research agreement with the central virology lab of the Israeli Ministry of Health (MoH), the company has been undertaking various experiments on the anti-viral activity of its proprietary terpene, TRP-ENV, against the HCoV-OC43 corona strain virus.
TRP-ENV has demonstrated potent anti-viral activity against the HCoV-OC43 corona strain virus following incubation with the virus for a period of 30 minutes and results demonstrated an immediate anti-viral activity against HCoV-OC43 corona strain virus in combination with a lower level ethanol.
The company is determining its commercialisation strategy in respect of these results and will update the market in due course.
BetterAir’s bacteria TRP-BIO
During the quarter, TRP-BIO – a unique terpene combination that can co-exist with BetterAir’s bacteria, - was further tested at MoH for its immediate anti-viral activity against HCov-OC43 corona strain virus in combination with BetterAir’s bacterial population.
The results showed an intermediate level of anti-viral activity of TRP-BIO in combination with BetterAir’s bacteria, which could not be seen in the presence of the bacteria alone.
SeLaria joint venture
A gel-based formula suitable for hand sanitising has since been developed at lab scale, which is now ready to enter the adaptation phase required for industrial scale-up and mass production.
The company is now in advanced discussions with SeaLaria to formulate an agreement to enter into commercial production of a cosmetic-grade, alcohol-free hand sanitiser, comprising TRP-ENV and gelatinized red algae.
The agreement will include the process for upscale of the formulation to manufacturing scale, including all relevant stability and safety assessments.
Final terms for the agreement have been set by both companies, with an intention to finalise the agreement by the end of the second quarter of 2021.
BetterAir joint venture
Both parties have been in discussions regarding progressing the commercial relationship following the encouraging results in the anti-viral study by the MoH.
Whilst BetterAir was very impressed with the results, as the study was undertaken under direct contact with the virus, it requested a second feasibility test be undertaken at MOH, whereby the anti-corona activity of TRP-BIO would be tested following spraying TRP-BIO on the virus, in the presence of BetterAir’s bacteria.
Following a risk assessment and assessment of the probability of success of the project, eSense has elected to place this project on hold for the time being.
Two new external directors
The company has now identified two candidates, which it proposes to put forward to shareholders for consideration as external directors - Maayan Bar and Deborah Gilmour.
Their appointments are subject to shareholder approval, with further information to be set out in a Notice of Meeting which will be sent to shareholders in due course.
A draft Notice of Meeting is currently with ASX for review, which the company is hoping to dispatch to shareholders as soon as possible, along with a more fulsome update in respect of the company’s continuing suspension.
Additional capital raising
During the quarter, the company raised $130,000 via an unsecured convertible loan, on terms materially similar to existing convertible loans, to meet operational expenditure and fund working capital requirements.
eSense’s cash on hand at the end of the quarter was around A$97,000.
The company is in the process of pursuing an additional capital raising to secure working capital to pursue its business objectives.
Further updates will be made to the market in due course.