Hosting Call Today at 5pm ET

CALGARY, AB, April 28, 2022 /PRNewswire/ - Nanalysis Scientific Corp. ("the Company", TSXV: NSCI, OTCQX: NSCIF, FRA: 1N1), a leader in portable NMR machines and MRI technology for healthcare and industrial applications, releases its fourth quarter and full year results for year ending December 31, 2021. Chief Executive Officer, Sean Krakiwsky and Chief Financial Officer, Luke Caplette will host a conference call at 5 P.M. Eastern Time today to discuss the results. All interested parties are invited to join this call.

"We are extremely proud to report a year of 100 per cent revenue growth," said Sean Krakiwsky, Founder and CEO of Nanalysis. "The recently announced acquisitions in early 2022 combined with our healthy balance sheet will provide the drivers from which we can build on our growing baseline business for the coming years. We plan to continue to expand our addressable markets, ensure synergies among our business divisions, and push organic sales of our existing product lines to maintain our growth trajectory for the foreseeable future." 

Financial highlights for the twelve months ended December 31, 2021:

• The Company reported consolidated revenue of $16,043K, an increase of $8,169K or 104% from the comparative period in 2020.
• Gross margin was 64% for the twelve months ended December 31, 2021 compared to 66% for the twelve months ended December 31, 2020.
• Income before other items for the twelve months ended December 31, 2021 was $1,905K an improvement of $3,549K compared to the same period last year.
• Net loss for the twelve months ended December 31, 2021 was $1,772K, an improvement of $1,906K from the comparable period in 2020.
• The Company had cash on hand of $10.4 million, an undrawn credit facility of $2.0 million and working capital of $12.1 million as of December 31, 2021.

Financial highlights for the three months ended December 31, 2021:

• The Company reported consolidated revenue of $5,077K, an increase of $2,397K or 89% from the comparative period in 2020.
• Gross margin was 61% for the three months ended December 31, 2021 compared to 65% for the three months ended December 31, 2020.
• Income before other items for the twelve months ended December 31, 2021 was $413K an improvement of $1,109K compared to the same period last year.
• Net loss for the three months ended December 31, 2021 was $658K, an improvement of $567K from the comparable period in 2020.

Recent strategic and operational highlights during and subsequent to the fourth quarter of 2021 include:

• Announced $4,985,000 Funding Contribution Commitment from the Canadian Government: The funding is provided through Prairies Economic Development Canada's Business Scale-up and Productivity program, which provides fast growing tech firms with support to scale-up and enter new markets. Nanalysis will draw down on the funds over the next three years with interest-free repayments commencing on September 1, 2025.
• Closed Initial Equity Investment in Quad Systems: As part of the agreement, Nanalysis provided Quad Systems with a CHF 1,000,000 loan which is convertible into 40,000 shares in the capital of Quad Systems. Upon funding the loan, Sean Krakiwsky, founder and CEO of Nanalysis was appointed to Quad Systems' Board of Directors as Nanalysis' nominee. Pursuant to the subscription agreement entered into between the Company and Quad Systems, Nanalysis has been issued 260,000 Quad Systems shares for a subscription price of CHF 6,500,000 and two representatives of the Company will be appointed to Quad Systems' Board of Directors. Currently, Nanalysis owns 43% of Quad Systems. Additionally, until July 1, 2023, Nanalysis has an option to acquire 100% of the issued and outstanding shares of Quad Systems at a pre-set valuation formula in a combination of cash and Nanalysis shares. During the Option Period, Nanalysis has a right of first refusal on all debt and equity offerings of Quad Systems.
• Executed an Upsized Public Offering and Non-Brokered Private Placement For Gross Proceeds of $15,224,700. On February 11, 2022 the Company closed a best efforts marketed public offering of common shares of the Company, including the full exercise of the over-allotment option and a non-brokered private placement of common shares for combined gross proceeds of $15.2 million. Pursuant to the terms of the public offering and non-brokered private placement the Company issued 13,840,637 common shares.
• Closed of Acquisition of K'(Prime) Technologies Inc. in early January, 2022: K'Prime, a North American sales and service company, with a particular focus on scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications is being integrated into the Company.

"The Company's objectives this year are to integrate the recent acquisitions, specifically K'Prime and Quad Systems. The former is going to allow the Company to continue to expand business with a full sales and service organization in multiple channels. Quad systems enables the Company to pursue the high-field part of the market while expanding product line offerings. The combination of both technology suites provides world class offerings," said Mr. Krakiwsky.   

"Our core products, the 60Mhz and 100Mhz NMR benchtop units, continue to enjoy strong demand and we entered this year with a backlog of units and aggressive expansion plans to continue to meet demand."

"The recent acquisitions, a strong balance sheet, increased manufacturing capacity, access to capital through the funding contribution from the Federal government and continued demand for our existing products gives us confidence leading into 2022 and beyond. The foundation for success has been put into place and now management needs to execute to capitalize on this opportunity," concluded Mr. Krakiwsky.  

Investors interested in participating on the live call can dial 1-888-664-6392 or 416-764-8659 from abroad. Investors can also access the call online through a listen-only webcast here: https://app.webinar.net/YQa2M3LDolK, or on the investor relations section of the Company's website HERE.

The webcast will be archived on the Company's investor relations webpage for at least 90 days and a telephonic playback will be available for seven days after the conference call by calling 1-888-390-0541 or 416-764-8677, conference ID #629645.

Nanalysis trades on the TSX Venture Exchange (TSXV) in Canada with ticker symbol 'NSCI', OTC and the Frankfurt exchange under the ticker symbol '1N1'. The company's business is what we term "MRI and NMR for industry". The company develops and manufactures portable Nuclear Magnetic Resonance (NMR) spectrometers or analyzers for laboratory and industrial markets. The NMReady-60™ was the first full-feature portable NMR spectrometer in a single compact enclosure requiring no liquid helium or any other cryogens. The company has followed-up that initial offering with new products and continues to have a strong innovation pipeline. Nanalysis recently announced that it has begun selling a 100MHz device in 2020. The Company's new device will be the most powerful and most advanced compact NMR device ever brought to market.

Nanalysis devices are used in many industries (oil and gas, chemical, mining, pharma, biotech, flavor and fragrances, agrochemicals, law enforcement, and more) as well as numerous government and university research labs around the world. The Company continues to exploit new global market opportunities independently and with partners.

With the recent acquisition of K'Prime, the company maintains a North American sales and service company of over 40 individuals who cover scientific instrumentation for pharma, food, chemical and oil & gas customers, as well as imaging systems for security applications.

Additionally, the Company has a 43% ownership in Quad Systems AG ("Quad Systems"), with an option to purchase the remaining shares. Quad Systems is a Zurich-based Nuclear Magnetic Resonance (NMR) company focused on high-field NMR for pharmaceutical and other vertical markets.

This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Nanalysis Scientific Corp.