Le Lézard
Classified in: Health, Science and technology, Business, Covid-19 virus
Subject: EARNINGS

Ceapro Inc. Reports 2020 Third Quarter and Nine-Month Financial Results and Operational Highlights


? R&D activities focused on advancing the development of innovative delivery systems and yeast beta glucan as a potential inhalable therapeutic for COVID-19 ?

? Q3 2020 sales of $3,476,000 compared to $2,908,000 for Q3 2019, representing a 20% increase ?

? Net profit of $192,000 for Q3 2020 vs. net loss of $104,000 for Q3 2019 ?

? Cash generated from operations of $4,777,000 in 2020 vs. $1,321,000 in 2019 ?

? Maintained production operations during COVID-19 pandemic and completed integration of manufacturing sites ?

EDMONTON, Alberta, Nov. 27, 2020 (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 the first nine months ended September 30, 2020.

"Over the course of the third quarter, our operations executed and adapted well, delivering significantly improved year over year results even during the final phase of integration of the production operations and despite the COVID-19 pandemic situation. We successfully completed the full integration of manufacturing operations under one roof in Edmonton, resumed the clinical trial for beta glucan as a cholesterol reducer, as well as the development and optimization of new products developed through the use of our PGX disruptive technology. Additionally, we are extremely proud of our employees who worked tirelessly since the beginning of the year to maintain operations and deliver these solid results despite the COVID-19 pandemic. As we continue to move forward, our focus remains on the health and safety of our associates, followed by business continuity," stated Gilles Gagnon, M.Sc., MBA, President and CEO.

Corporate and Operational Highlights

Pipeline Development:

Technology:

Production Operations:

Corporate:

Subsequent to Quarter:

Financial Highlights for the Third Quarter and Nine-Month Period Ended September 30, 2020

"Looking ahead, while taking into account the ongoing potential economic impact related to COVID-19 and evolving consumption trends, we believe Ceapro is well-positioned to once again deliver a double-digit growth in sales well in line with the positive trend achieved over the last years. With a strong balance sheet, a group of dedicated people, and a solid base business, coupled with the innovative technologies and products that we have developed to enable us to expand, Ceapro is poised to emerge as a successful life science company," concluded Mr. Gagnon.

CEAPRO INC.   
Consolidated Balance Sheets   
Unaudited   
    
 September 30,December 31, 
 20202019 
 $$ 
    
ASSETS   
Current Assets   
Cash and cash equivalents6,118,4031,857,195 
Trade receivables1,838,0923,659,541 
Other receivables143,18746,812 
Inventories (note 3)1,191,675669,005 
Prepaid expenses and deposits166,437178,908 
    
 9,457,7946,411,461 
Non-Current Assets   
Investment tax credits receivable607,700607,700 
Deposits85,75585,755 
Licences (note 4)19,25521,477 
Property and equipment (note 5)18,605,76319,764,122 
Deferred tax assets378,643378,643 
    
 19,697,11620,857,697 
    
TOTAL ASSETS29,154,91027,269,158 
    
LIABILITIES AND EQUITY   
Current Liabilities   
Accounts payable and accrued liabilities949,8131,291,204 
Current portion of long-term debt (note 6)-111,865 
Current portion of lease liabilities (note 7)275,726265,123 
Current portion of CAAP loan (note 9)80,81472,942 
    
 1,306,3531,741,134 
Non-Current Liabilities   
Long-term lease liabilities (note 7)2,567,4872,775,627 
CAAP loan (note 9)69,62161,580 
Deferred tax liabilities378,643378,643 
    
 3,015,7513,215,850 
    
TOTAL LIABILITIES4,322,1044,956,984 
    
Equity   
Share capital (note 8 (b))16,507,99816,401,677 
Contributed surplus (note 8 (e))4,669,6844,650,090 
Retained earnings3,655,1241,260,407 
    
 24,832,80622,312,174 
    
TOTAL LIABILITIES AND EQUITY29,154,91027,269,158 


CEAPRO INC.     
Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) 
Unaudited     
    
 Quarters Nine Months  
 Ended September 30, Ended September 30,  
 2020 2019 2020 2019  
 $ $ $ $  
      
Revenue (note 15)3,475,625 2,907,980 12,414,970 9,158,637  
Cost of goods sold1,814,080 1,894,570 5,794,573 5,327,161  
      
Gross margin1,661,545 1,013,410 6,620,397 3,831,476  
      
Research and product development478,993 307,477 1,381,332 1,919,875  
General and administration791,217 666,640 2,494,514 2,278,279  
Sales and marketing12,395 87,176 89,830 289,956  
Finance costs (note 12)43,066 51,865 189,258 213,052  
      
Income (loss) from operations335,874 (99,748)2,465,463 (869,686) 
      
Other income (expenses) (note 11)(144,251)(3,766)(70,746)(429,047) 
      
Income (loss) before tax191,623 (103,514)2,394,717 (1,298,733) 
      
Income taxes- - - -  
      
Total comprehensive income (loss) for the period191,623 (103,514)2,394,717 (1,298,733) 
      
Net income (loss) per common share (note 18):     
Basic0.00 (0.00)0.03 (0.02) 
Diluted0.00 (0.00)0.03 (0.02) 
      
Weighted average number of common shares outstanding (note 18):     
Basic77,610,113 77,313,015 77,585,679 77,138,854  
Diluted78,700,415 77,313,015 78,039,105 77,138,854  
      


CEAPRO INC.   
Consolidated Statements of Cash Flows   
Unaudited   
    
 2020 2019  
Nine Months Ended September 30,$ $  
OPERATING ACTIVITIES   
Net income (loss) for the period2,394,717 (1,298,733) 
Adjustments for items not involving cash   
Finance costs117,237 132,161  
Transaction costs1,108 3,633  
Depreciation and amortization1,382,838 1,369,653  
Foreign exchange gain on long-term debt- (307) 
Accretion15,913 22,258  
Share-based payments122,902 185,557  
Net income (loss) for the period adjusted for non-cash items4,034,715 414,222  
CHANGES IN NON-CASH WORKING CAPITAL ITEMS   
Trade receivables1,821,449 705,254  
Other receivables(96,375)(16,754) 
Inventories(522,670)(258,444) 
Prepaid expenses and deposits12,471 257,010  
Accounts payable and accrued liabilities relating to operating activities(355,552)351,547  
Total changes in non-cash working capital items859,323 1,038,613  
Net income (loss) for the period adjusted for non-cash and working capital items4,894,038 1,452,835  
Interest paid(117,237)(132,161) 
CASH GENERATED FROM OPERATIONS4,776,801 1,320,674  
INVESTING ACTIVITIES   
Purchase of property and equipment(222,610)(338,548) 
Proceeds from sale of equipment353 -  
Deposits relating to investment in equipment- 187,790  
Accounts payable and accrued liabilities relating to investing activities14,161 54,933  
CASH USED IN INVESTING ACTIVITIES(208,096)(95,825) 
FINANCING ACTIVITIES   
Stock options exercised3,013 17,284  
Repayment of long-term debt(112,973)(288,617) 
Repayment of lease liabilities(197,537)(201,850) 
CASH USED IN FINANCING ACTIVITIES(307,497)(473,183) 
Increase in cash and cash equivalents4,261,208 751,666  
    
Cash and cash equivalents at beginning of the period1,857,195 1,844,134  
    
Cash and cash equivalents at end of the period6,118,403 2,595,800  

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
JTC Team, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: czo@jtcir.com

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



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News published on 27 november 2020 at 09:00 and distributed by: