Innovotech Reviews Progress, Redirection and Innovation Over 2018 - 2019

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(TheNewswire)



Edmonton, Alberta – TheNewswire - December 10th, 2019 - Innovotech Inc. (TSXV:IOT) is pleased to report that as 2019 draws to a close it has completed its renewal and redirection following the 2017 to 2018 financing and settlement of obligations.  These changes have been material, strategic and purposeful.

 Early in the first quarter of 2017, working capital was negative by $1,290,828.  At September 30, 2019, working capital was a positive $140,934.  During the period, outstanding shares rose from 28,739,612 to 36, 239,612.  

Nine-month net loss at September 30, 2019 was a nominal $379 compared to a loss of $159,479 in the comparable 2018 period.  G&A costs were lowered and revenues rose by 21%.  EBITDAS turned positive.  Innovotech’s R&D costs declined as the Company’s InnovoSIL -1 anti-microbial compound reached full development.  The Company is exploring ongoing opportunities to sublicense InnovoSIL -1, and it is the subject of third party testing towards that end.

In 2018, 19.5%, and in 2019 so far, 18% of our contract research revenue has come from new accounts opened during the year.  Our 2019 ISO 17025 lab accreditation has contributed to new account growth and that growth has improved financial performance.  Improving performance has led to a commitment by the Company to an aggressive marketing program of client visits and global conference attendances in 2020 aimed at increasing revenue, adding new client accounts and raising our profile within our target market.  

This marketing program will showcase our recent innovation.  In 2018-19, our COO, Dr. Amin Omar, and staff imagined, created and qualified an innovative analytical device that has received emphatic client endorsement (where clients were privately consulted).  This device is 3-D printed in house. A provisional patent filing and an FDA review are pending.  In early 2020, this device will be in use in our contract research to the benefit of our clients. We believe that this device will help us to attract new clients because no competitor to our knowledge has the capability that it offers.  Greater detail waits on the patent filing.

To accommodate what we expect will be an increased level of business resulting directly from the above initiatives, we have committed to a significant first half 2020 capital spend to ensure capacity and to replace older equipment thus improving productivity and efficiency.  

While the process of reviewing acquisition opportunities toward increasing our size, substance, and reach continues, we are becoming increasingly comfortable with our Company’s stand-alone value proposition that has been put in place over the period reviewed.  Our management and staff have worked diligently and have created a financially stronger, more competitive Innovotech committed to innovation, productivity and, market development.

Alan Savage

Director, CFO

Innovotech Inc.

[email protected]

This document may contain forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company’s exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management’s assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward-looking statements, except as required by applicable law.

 

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of materials in this news release.

 

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