- 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:
Technology:
Corporate:
Subsequent to Quarter
"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
"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): | ||||
Basic | 77,046,786 | 75,712,526 | ||
Diluted | 77,046,786 | 75,712,526 | ||
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.
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.
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