- Continued execution on transition to a new business model from contract manufacturer to biopharmaceutical company -
- Increased R&D investment focused on the development of delivery systems -
- First quarter 2019 sales increased 41% vs first quarter 2018 -
EDMONTON, Alberta, May 23, 2019 (GLOBE NEWSWIRE) -- Ceapro Inc.(TSX-V: CZO) (“Ceapro” or the “Company”), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced financial results and operational highlights for the first quarter ended March 31, 2019.
Corporate and Operational Highlights
Pipeline Development:
Screened first group of patients for the pilot clinical trial evaluating beta glucan as a potential cholesterol reducer. Patient enrollment to commence following completion of randomization. This is the first clinical trial with a proprietary pharmaceutical grade product in Ceapro’s history;
Announced that the results from the Company’s bio-efficacy study assessing anti-inflammatory properties and immunoregulatory mechanism of action of avenanthramides in exercise induced inflammation was accepted for presentation on May 31, 2019 at the American College of Sports Medicine Annual Meeting to be held in Orlando, FL; and
Developed new PGX-dried chemical complexes like sodium alginate and gum arabic impregnated with coenzyme Q10 demonstrating the versatility of the PGX technology and the potential to develop significant bioactives delivery systems. Dissoluble thin films including these new chemical complexes developed at lab scale.
Technology:
Advanced conversations with interested potential partners to utilize Ceapro’s innovative technology;
Continued to build solid IP portfolio for its unique and disruptive enabling PGX technology with issuance of patent in India, which represents a very large potential market. Ceapro’s proprietary PGX technology now has IP protection in the U.S., Canada, Europe and India; and
Executed on research collaboration projects with Universities of Alberta and McMaster for the impregnation of various bio actives using PGX-processed dry beta glucan as a potential delivery system for multiple applications in healthcare.
Corporate:
Recruited and appointed top talent for key management positions; and
Increased Company exposure at conferences and activities on social media.
Subsequent to Quarter
Presented positive data from three PGX research projects at the International Symposium on Supercritical Fluids held in Spain from April 12-14, 2019;
Received Site License from Health Canada Natural and Non-Prescription Products Directorate; and
Participated in a trade mission showcasing Ceapro’s products and technologies in Germany and Spain.
“Our strategy remains focused on strengthening and leveraging our base cosmeceuticals business, enabling the Company to successfully execute on our transition to a new business model from a contract manufacturer to a biopharmaceutical company. Our recently issued Site License obtained for both bioprocessing sites from the Health Canada Natural Product Directorate is a major step forward for Ceapro as it will enable the formulation and release of finished products,” stated Gilles Gagnon, M.Sc., MBA, President and CEO of Ceapro. “Over the course of 2019, we will continue to work towards the expansion of our product portfolio and are currently working to develop formulations that would potentially allow the delivery of bioactives through different modes of administration such as oral, topical, sub-lingual, nasal spray. Additionally, our line of Juvente products will be used primarily for the development of topical/transdermal delivery systems utilizing Ceapro’s proprietary new chemical complexes developed with our PGX technology.”
Financial Highlights for the First Quarter Ended March 31, 2019
Total sales of $3,197,000 for the first quarter of 2019 compared to $2,270,000 for the comparative period in 2018; an increase of 41% over last year. Avenanthramides sales volumes increased by 31% for Q1 2019 vs Q1 2018.
Net loss after taxes of $637,000 for the first quarter of 2019 compared to a net loss after taxes of $295,000 for the comparative period in 2018. Net loss includes non-cash items like depreciation of $456,000, mostly due to the completion of the Edmonton manufacturing site and the inclusion of $85,000 of depreciation on right-of-use assets as a result of adopting the new lease standard under IFRS effective as of January 1, 2019. These non-cash charges do not have an adverse effect on the Company’s liquidity or cash flows from operating activities and will not have an impact on future operations.
Research and Development of $801,000 in Q1 2019 vs $339,000 in 2018. This increased investment for the development of new products and technologies is in line with the transition to a new business model from a contract manufacturer to a biopharmaceutical company.
Cash generated from operations of $367,000 in Q1 2019 vs. cash flows generated from operations of $370,000 in Q1 2018.
Positive working capital balance of $4,306,727 as of March 31, 2019.
“In an effort to build significant momentum to ensure growth in 2019, we will deploy tremendous efforts towards direct marketing and sales activities while we pursue activities through our distribution network. We also remain very active in business development activities for out-licensing of Ceapro’s products candidates and applications arising from the use of our PGX game-changing technology.”
“As stated previously, I strongly believe Ceapro has all the key components for success based on a very solid foundation, a highly competent team, a healthy balance sheet with minimal debt to equity ratio, and a very strong technology and product portfolio with the potential of getting into very large markets,” concluded Mr. Gagnon.
CEAPRO INC.
Consolidated Balance Sheets
Unaudited
March 31,
December 31,
2019
2018
$
$
ASSETS
Current Assets
Cash and cash equivalents
1,900,119
1,844,134
Trade receivables
2,524,978
3,015,344
Other receivables
35,384
46,899
Inventories (note 4)
968,554
710,708
Prepaid expenses and deposits
525,450
518,219
5,954,485
6,135,304
Non-Current Assets
Investment tax credits receivable
607,700
607,700
Deposits
88,340
88,340
Licences (note 5)
23,699
24,440
Property and equipment (note 6)
20,813,996
17,947,967
Deferred tax assets
520,872
520,872
22,054,607
19,189,319
TOTAL ASSETS
28,009,092
25,324,623
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities
1,096,973
949,878
Current portion of long-term debt (note 7)
220,181
336,956
Current portion of lease liabilities (note 8)
254,927
-
Current portion of CAAP loan (note 10)
75,677
72,942
1,647,758
1,359,776
Non-Current Liabilities
Long-term debt (note 7)
64,381
110,350
Long-term lease liabilities (note 8)
2,975,763
-
CAAP loan (note 10)
119,626
115,216
Deferred tax liabilities
524,280
524,280
3,684,050
749,846
TOTAL LIABILITIES
5,331,808
2,109,622
Equity
Share capital (note 9 (b))
16,322,633
16,320,522
Contributed surplus (note 9 (e))
4,598,244
4,501,444
Retained earnings
1,756,407
2,393,035
22,677,284
23,215,001
TOTAL LIABILITIES AND EQUITY
28,009,092
25,324,623
CEAPRO INC.
Consolidated Statements of Net Loss and Comprehensive Loss
Unaudited
2019
2018
Three Months Ended March 31,
$
$
Revenue (note 16)
3,196,930
2,269,580
Cost of goods sold
1,840,298
1,168,294
Gross margin
1,356,632
1,101,286
Research and product development
800,504
338,813
General and administration
733,019
747,736
Sales and marketing
107,678
16,023
Finance costs (note 13)
108,374
70,903
Loss from operations
(392,943
)
(72,189
)
Other expenses (note 12)
(243,685
)
(286,418
)
Loss before tax
(636,628
)
(358,607
)
Income taxes
Current tax recovery
-
-
Deferred tax benefit
-
63,400
Income tax benefit
-
63,400
Total comprehensive loss for the period
(636,628
)
(295,207
)
Net loss per common share (note 19):
Basic
(0.01
)
(0.00
)
Diluted
(0.01
)
(0.00
)
Weighted average number of common shares outstanding (note 19):
Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and “active ingredients” from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company’s website at www.ceapro.com.
For more information contact:
Jenene Thomas Jenene Thomas Communications, LLC Investor Relations and Corporate Communications Advisor T (US): +1 (833) 475-8247 E: [email protected]
Issuer: Gilles R. Gagnon, M.Sc., MBA President & CEO T: 780-421-4555
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
