– Company boasts highest second quarter sales to date; Q2 2022 sales of $5,500,000 vs $4,409,000 in Q2 2021, a 25% increase
– YTD Sales increased 28% vs 2021 – $11,672,000 vs $9,110,000
– Income before tax of $2,177,000 in Q2 2022 vs $676,000 in Q2 2021
– YTD Income before tax increased 402% vs 2021 – $4,790,000 vs $1,191,000
– Pursued advanced development of delivery systems using PGX Technology
EDMONTON, Alberta, Aug. 24, 2022 (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 second quarter and six months ended June 30, 2022.
“I could not be more excited for the future of Ceapro. With our very strong performance year to date, we are on track to achieve another solid year with double-digit growth. Progress continues on all fronts from production operations to research and development, allowing us to advance our pipeline while expanding our business model. We have learned a lot from our encouraging development work and studies and will continue to invest in research and development and remain focused on our pipeline. We are well positioned for the next steps in becoming a high-value life sciences company,” stated Gilles Gagnon, M.Sc., MBA, President and CEO.
Corporate and Operational Highlights
Pipeline Development:
The Company’s focus is on avenanthramides, alginate, yeast beta glucan and new chemical complexes/delivery systems.
Avenanthramides
Formulation:
Production and preparation of the selected 30mg and 240mg pill formulation of the drug product was scaled-up in preparation of the clinical batches for a Phase 1 safety and tolerability study. Stability studies are ongoing.
Clinical batches were manufactured, packaged and labeled in June 2022 by Corealis Inc. GMP Manufacturing Services.
Phase 1 Clinical Trial:
The clinical trial protocol completed with Montreal Heart Institute was further discussed with Health Canada for expansion into a Phase 1/ 2a to include a cohort of patients suffering from mild inflammation. A response from Health Canada for clearance to proceed with this study is expected in Q4 2022.
Alginate
Yeast Beta Glucan (YBG)
Technology:
Corporate:
Subsequent to Quarter:
Financial Highlights for the Second Quarter and the Six-Month Period Ended June 30, 2022
“While we are very pleased with the strong financial results so far, proper planning and management of supply chain challenges will be key in securing success during this transformative year for Ceapro. With a strengthened management team, a renewed agreement with our long-time and committed partner, Symrise and with a solid and clean balance sheet and positive cash flows, we are in a position to financially support the projects that will enable the expansion to a new business model from a contract manufacturer/commodity company to a high-value, life science/biopharmaceutical company. More specifically, we are very enthusiastic for the many opportunities which we expect have the potential to drive significant value, including the Phase 1 clinical trial with our newly developed avenanthramides pill formulation, the development of new chemical complexes as potential delivery systems for bioactives with alginate as a carrier, the development and assessment of yeast beta glucan as an immune booster and as a potential inhalable therapeutic for lung fibrotic diseases including COVID-19 conditions and the implementation of the intermediary scale level of the PGX processing unit in Edmonton,” concluded Mr. Gagnon.
CEAPRO INC. | ||
Condensed Interim Consolidated Balance Sheets | ||
Unaudited | ||
June 30, | December 31, | |
2022 | 2021 | |
$ | $ | |
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | 11,367,997 | 7,780,989 |
Trade receivables | 3,360,751 | 2,092,842 |
Other receivables | 90,723 | 45,850 |
Inventories (note 3) | 2,116,159 | 1,644,893 |
Prepaid expenses and deposits | 169,978 | 162,919 |
Total Current Assets | 17,105,608 | 11,727,493 |
Non-Current Assets | ||
Investment tax credits receivable | 766,629 | 766,629 |
Deposits | 79,539 | 79,539 |
Licences (note 4) | 14,069 | 15,551 |
Property and equipment (note 5) | 16,802,060 | 17,499,774 |
Deferred tax assets | – | 439,063 |
Total Non-Current Assets | 17,662,297 | 18,800,556 |
TOTAL ASSETS | 34,767,905 | 30,528,049 |
LIABILITIES AND EQUITY | ||
Current Liabilities | ||
Accounts payable and accrued liabilities | 613,721 | 682,057 |
Current portion of lease liabilities (note 6) | 303,354 | 290,055 |
Total Current Liabilities | 917,075 | 972,112 |
Non-Current Liabilities | ||
Long-term lease liabilities (note 6) | 2,202,269 | 2,358,862 |
Deferred tax liabilities | 692,843 | – |
Total Non-Current Liabilities | 2,895,112 | 2,358,862 |
TOTAL LIABILITIES | 3,812,187 | 3,330,974 |
Equity | ||
Share capital (note 7 (b)) | 16,657,044 | 16,557,401 |
Contributed surplus (note 7 (e)) | 4,681,131 | 4,680,690 |
Retained earnings | 9,617,543 | 5,958,984 |
Total Equity | 30,955,718 | 27,197,075 |
TOTAL LIABILITIES AND EQUITY | 34,767,905 | 30,528,049 |
CEAPRO INC. | ||||||
Condensed Interim Consolidated Statements of Net Income and Comprehensive Income | ||||||
Unaudited | ||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||
2022 | 2021 | 2022 | 2021 | |||
$ | $ | $ | $ | |||
Revenue (note 13) | 5,500,399 | 4,408,631 | 11,672,023 | 9,110,374 | ||
Cost of goods sold | 1,861,064 | 1,770,153 | 4,078,079 | 4,213,953 | ||
Gross margin | 3,639,335 | 2,638,478 | 7,593,944 | 4,896,421 | ||
Research and product development | 543,924 | 830,511 | 899,205 | 1,647,358 | ||
General and administration | 1,069,275 | 952,847 | 1,838,320 | 1,665,054 | ||
Sales and marketing | 9,248 | 16,362 | 14,547 | 29,600 | ||
Finance costs (note 10) | 32,175 | 38,344 | 120,210 | 132,254 | ||
Income from operations | 1,984,713 | 800,414 | 4,721,662 | 1,422,155 | ||
Other (income) expense (note 9) | (191,841 | ) | 123,942 | (68,803 | ) | 230,807 |
Income before tax | 2,176,554 | 676,472 | 4,790,465 | 1,191,348 | ||
Deferred income tax expense | 514,283 | – | 1,131,906 | – | ||
Total net income and comprehensive income for the period | 1,662,271 | 676,472 | 3,658,559 | 1,191,348 | ||
Net income per common share (note 16): | ||||||
Basic | 0.02 | 0.01 | 0.05 | 0.02 | ||
Diluted | 0.02 | 0.01 | 0.05 | 0.02 | ||
Weighted average number of common shares outstanding (note 16): | ||||||
Basic | 77,734,865 | 77,673,832 | 77,710,854 | 77,662,495 | ||
Diluted | 78,474,139 | 78,684,303 | 78,405,883 | 78,684,344 |
CEAPRO INC. | ||||
Condensed Interim Consolidated Statements of Cash Flows | ||||
Unaudited | ||||
2022 | 2021 | |||
Six Months Ended June 30, | $ | $ | ||
OPERATING ACTIVITIES | ||||
Net income for the period | 3,658,559 | 1,191,348 | ||
Adjustments for items not involving cash | ||||
Finance costs | 65,210 | 71,662 | ||
Depreciation and amortization | 939,191 | 937,356 | ||
Accretion | – | 5,592 | ||
Deferred income tax expense | 1,131,906 | – | ||
Share-based payments | 39,924 | 6,828 | ||
5,834,790 | 2,212,786 | |||
CHANGES IN NON-CASH WORKING CAPITAL ITEMS | ||||
Trade receivables | (1,267,909 | ) | 218,155 | |
Other receivables | (44,873 | ) | 56,311 | |
Inventories | (471,266 | ) | 41,916 | |
Prepaid expenses and deposits | (7,059 | ) | 51,179 | |
Accounts payable and accrued liabilities relating to operating activities | (20,582 | ) | (75,337 | ) |
(1,811,689 | ) | 292,224 | ||
Net income for the year adjusted for non-cash and working capital items | 4,023,101 | 2,505,010 | ||
Interest paid | (65,210 | ) | (71,662 | ) |
CASH GENERATED FROM OPERATIONS | 3,957,891 | 2,433,348 | ||
INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (239,995 | ) | (296,534 | ) |
Deposits relating to the purchase of equipment | – | (16,733 | ) | |
Accounts payable and accrued liabilities relating to investing activities | (47,754 | ) | (134,554 | ) |
CASH USED IN INVESTING ACTIVITIES | (287,749 | ) | (447,821 | ) |
FINANCING ACTIVITIES | ||||
Stock options exercised | 60,160 | 25,620 | ||
Repayment of lease liabilities | (143,294 | ) | (110,748 | ) |
CASH USED IN FINANCING ACTIVITIES | (83,134 | ) | (85,128 | ) |
Increase in cash and cash equivalents | 3,587,008 | 1,900,399 | ||
Cash and cash equivalents at beginning of the period | 7,780,989 | 5,369,029 | ||
Cash and cash equivalents at end of the period | 11,367,997 | 7,269,428 |
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
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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