– Product development focused on the production of powder formulations of oat beta glucan and avenanthramides for cosmeceuticals market
– Technology development focused on the PGX pilot scale units
– Q3 2023 sales of $2,619,000 vs $3,845,000 in Q3 2022; YTD sales of $7,983,000 vs $15,517,000
– Ended the quarter with $11.4 million in cash allowing funding for planned pipeline and technology developments
EDMONTON, Alberta, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Ceapro Inc. (TSX-V: CZO; OTCQX: CRPOF) (“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 third quarter and nine months ended September 30, 2023.
“While the base business has experienced some challenges, mainly due to changes in the marketplace, we are very encouraged by the significant advancements we have made in new products and technologies development. Further, over the past quarter we remained very active with strategic corporate initiatives aimed towards achieving a stated objective related to uplisting Ceapro to an international stock exchange. We are also very pleased with the recent signing of an extended supply and distribution agreement reinforcing our relationship with long-time partner Symrise,” stated Gilles Gagnon, M.Sc., MBA, President and CEO.
Corporate and Operational Highlights
Pipeline Development:
The Company’s focus is on avenanthramides, beta glucan from oat and yeast and new chemical complexes/delivery systems.
Avenanthramides & Oat Beta Glucan
Marketed products:
Powder formulations for cosmeceuticals
Clinical Development:
Avenanthramides (AVS)
Formulation:
Phase 1-2a Clinical Trial:
Pre-Clinical Development:
Avenanthramides & Oat Beta Glucan
Wound Healing-Tissue Regeneration:
Yeast Beta Glucan (YBG) - Potential Inhalo-Therapeutic
Immune/Energy Booster:
Yeast beta glucan is the product that will be used for the PGX scale-up project at pilot scale levels of 50L and 100L vessels.
Technology
Malted Technology (Avenanthramides)
Pressurized Gas eXpanded Technology (PGX)
Corporate
Financial Highlights for the Third Quarter and Nine-Month Period Ended September 30, 2023
“While the base business has been significantly impacted during the first nine months of 2023 due to various economic factors and organizational changes in one major customer, we remain in a solid financial position and will continue to focus our efforts on the development of new products and technologies using cash in hand while continuing to assess different market initiatives to grow our base and create new business with new products and customers,” concluded Mr. Gagnon.
CEAPRO INC. | ||||
Condensed Interim Consolidated Balance Sheets | ||||
Unaudited | ||||
September 30, | December 31, | |||
2023 | 2022 | |||
$ | $ | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 11,355,731 | 13,810,998 | ||
Trade receivables | 982,895 | 2,820,300 | ||
Other receivables | 81,844 | 64,808 | ||
Inventories (note 4) | 5,370,967 | 3,757,040 | ||
Prepaid expenses and deposits | 214,371 | 135,133 | ||
Total Current Assets | 18,005,808 | 20,588,279 | ||
Non-Current Assets | ||||
Investment tax credits receivable | 854,895 | 854,895 | ||
Deposits | 76,954 | 76,954 | ||
Licences (note 5) | 10,366 | 12,588 | ||
Property and equipment (note 6) | 14,996,189 | 16,201,755 | ||
Total Non-Current Assets | 15,938,404 | 17,146,192 | ||
TOTAL ASSETS | 33,944,212 | 37,734,471 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 1,246,197 | 1,730,377 | ||
Current portion of lease liabilities (note 7) | 391,241 | 370,460 | ||
Total Current Liabilities | 1,637,438 | 2,100,837 | ||
Non-Current Liabilities | ||||
Long-term lease liabilities (note 7) | 1,953,295 | 2,248,577 | ||
Deferred tax liabilities | 390,109 | 1,095,968 | ||
Total Non-Current Liabilities | 2,343,404 | 3,344,545 | ||
TOTAL LIABILITIES | 3,980,842 | 5,445,382 | ||
Equity | ||||
Share capital (note 8 (b)) | 16,721,867 | 16,694,625 | ||
Contributed surplus (note 8 (e)) | 4,941,386 | 4,714,404 | ||
Retained earnings | 8,300,117 | 10,880,060 | ||
Total Equity | 29,963,370 | 32,289,089 | ||
TOTAL LIABILITIES AND EQUITY | 33,944,212 | 37,734,471 | ||
CEAPRO INC. | ||||||||
Condensed Interim Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income | ||||||||
Unaudited | ||||||||
Three Months | Nine Months | |||||||
Ended September 30, | Ended September 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Restated | Restated | |||||||
(note 3) | (note 3) | |||||||
$ | $ | $ | $ | |||||
Revenue (note 14) | 2,618,973 | 3,845,370 | 7,982,542 | 15,517,393 | ||||
Cost of goods sold | 1,538,950 | 1,572,538 | 4,226,411 | 5,703,731 | ||||
Gross margin | 1,080,023 | 2,272,832 | 3,756,131 | 9,813,662 | ||||
Research and product development | 584,665 | 314,250 | 2,085,127 | 1,213,455 | ||||
General and administration | 1,972,884 | 869,110 | 5,119,395 | 2,707,430 | ||||
Sales and marketing | 11,837 | 6,160 | 33,474 | 20,707 | ||||
Finance costs (note 10) | 31,450 | 31,382 | 152,894 | 151,592 | ||||
(Loss) income from operations | (1,520,813 | ) | 1,051,930 | (3,634,759 | ) | 5,720,478 | ||
Other income (note 11) | (195,693 | ) | (271,162 | ) | (348,957 | ) | (339,965 | ) |
(Loss) income before tax | (1,325,120 | ) | 1,323,092 | (3,285,802 | ) | 6,060,443 | ||
Deferred tax (benefit) expense | (284,663 | ) | 312,625 | (705,859 | ) | 1,431,981 | ||
Net (loss) income and comprehensive (loss) income for the period | (1,040,457 | ) | 1,010,467 | (2,579,943 | ) | 4,628,462 | ||
Net (loss) income per common share (note 17): | ||||||||
Basic | (0.01 | ) | 0.01 | (0.03 | ) | 0.06 | ||
Diluted | (0.01 | ) | 0.01 | (0.03 | ) | 0.06 | ||
Weighted average number of common shares outstanding (note 17): | ||||||||
Basic | 78,291,438 | 78,192,923 | 78,265,631 | 77,873,310 | ||||
Diluted | 78,291,438 | 78,817,665 | 78,265,631 | 78,519,944 | ||||
CEAPRO INC. | ||||
Condensed Interim Consolidated Statements of Cash Flows | ||||
Unaudited | ||||
2023 | 2022 | |||
Restated | ||||
(note 3) | ||||
Nine Months Ended September 30, | $ | $ | ||
OPERATING ACTIVITIES | ||||
Net (loss) income for the period | (2,579,943 | ) | 4,628,462 | |
Adjustments for items not involving cash | ||||
Finance costs | 97,894 | 96,592 | ||
Depreciation and amortization | 1,458,429 | 1,415,361 | ||
Deferred income tax (benefit) expense | (705,859 | ) | 1,431,981 | |
Share-based payments | 237,324 | 72,926 | ||
(1,492,155 | ) | 7,645,322 | ||
CHANGES IN NON-CASH WORKING CAPITAL ITEMS | ||||
Trade receivables | 1,837,405 | (817,830 | ) | |
Other receivables | (17,036 | ) | (34,006 | ) |
Inventories | (1,613,927 | ) | (956,409 | ) |
Prepaid expenses and deposits | (74,713 | ) | 9,046 | |
Accounts payable and accrued liabilities relating to operating activities | (558,953 | ) | (105,557 | ) |
(427,224 | ) | (1,904,756 | ) | |
Net (loss) income for the period adjusted for non-cash and working capital items | (1,919,379 | ) | 5,740,566 | |
Interest paid | (97,894 | ) | (96,592 | ) |
CASH (USED IN) GENERATED FROM OPERATIONS | (2,017,273 | ) | 5,643,974 | |
INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (250,641 | ) | (326,544 | ) |
Deposits relating to the purchase of equipment | (4,525 | ) | - | |
Accounts payable and accrued liabilities relating to investing activities | 74,773 | (47,754 | ) | |
CASH USED IN INVESTING ACTIVITIES | (180,393 | ) | (374,298 | ) |
FINANCING ACTIVITIES | ||||
Stock options exercised | 16,900 | 75,640 | ||
Repayment of lease liabilities | (274,501 | ) | (216,236 | ) |
CASH USED IN FINANCING ACTIVITIES | (257,601 | ) | (140,596 | ) |
(Decrease) increase in cash and cash equivalents | (2,455,267 | ) | 5,129,080 | |
Cash and cash equivalents at beginning of the period | 13,810,998 | 7,780,989 | ||
Cash and cash equivalents at end of the period | 11,355,731 | 12,910,069 |
The complete financial statements are available for review on SEDAR at https://sedar.com/Ceapro and on the Company’s website at www.ceapro.com.
About Ceapro Inc.
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.
Forward-looking Statements
This press release contains forward-looking statements based on our assessment of Ceapro’s future plans and operations as of the date of this press release. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties. Readers are cautioned that the assumptions used in the preparation of forward-looking information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements in this press release. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Ceapro will derive from them. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise unless required by law.
For more information contact:
Jenene Thomas
JTC Team, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: [email protected]
This press release does not express or imply that the Company claims its product has the ability to eliminate, cure or contain the SARS-2-CoV-2 (COVID-19) at this time.
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