– R&D activities focused on the production of Avenanthramides pills for clinical trials and for scale-up of the PGX Technology
– Q3 2022 sales of $3,845,000 vs $4,523,000 in Q3 2021; YTD sales increase 14% vs 2021 – $15,517,000 vs $13,633,000
– Income before tax of $1,128,000 in Q3 2022 vs $875,000 in Q3 2021; YTD Income before tax increased 186% vs 2021 – $5,919,000 vs $2,067,000
EDMONTON, Alberta, Nov. 09, 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 third quarter and nine months ended September 30, 2022.
“Thanks to the hard work and commitment of our employees, we stand on a very solid foundation. With our year-to-date financial results, ongoing scientific advancement, expected investment and strategic plan, Ceapro is well positioned for a bright future as 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
Clinical Trial:
Subsequent to quarter, the Company received an Acknowledgement Letter from Health Canada confirming complete information and material to support a Clinical Trial Application (CTA) for Phase 1/2a study entitled “Ceapro Inc Avenanthramide (AVA): A Double-Blind, Placebo-Controlled, Randomized, Adaptive, First-in-Human Study to Assess Safety, Tolerability, and Pharmacokinetics of Single and Multiple Ascending Oral Doses of Avenanthramide (AvenActive).” A response from Health Canada for clearance to proceed with this study is expected to be received within 90 days.
Formulation:
In planning for an extension into a Phase 2a (subject to Phase 1 outcomes in terms of safety and selected dose), the Ceapro R&D group manufactured sufficient additional GMP batches of avenanthramides active ingredient powder for a second formulation of avenanthramides pills. The second GMP clinical batches will also be manufactured, packaged and labeled in 2023 by Corealis Inc. GMP Manufacturing Services.
Malted Technology:
The Indian Government Patent Office has issued the Company Patent No. 408344 entitled, “Method For Increasing Concentration of Avenanthramides in Oats,” related to the production of its core value-driver product, avenanthramides, utilizing a malting technology in-licensed from Agriculture and Agri-Food Canada.
Alginate
Yeast Beta Glucan (YBG)
Technology:
Corporate:
Subsequent to Quarter:
Financial Highlights for the Third Quarter and Nine-Month Period Ended September 30, 2022
“Looking ahead, we believe Ceapro is well-positioned to once again deliver significant growth in sales, well in line with the positive trend achieved in recent years. With record year-to-date financial performance yielding a strong balance sheet, a solid foundation with Ceapro’s cosmeceuticals base business, positive results obtained from early research programs with new chemical complexes, and the scale-up and development of our unique enabling technologies and portfolio, Ceapro is now at an inflection point to accelerate its expansion into a new business model from a contract manufacturer/commodity company to a high value life science/biopharmaceutical company involved in nutraceuticals and pharmaceuticals markets,” concluded Mr. Gagnon.
CEAPRO INC. | |||
Condensed Interim Consolidated Balance Sheets | |||
Unaudited | |||
September 30, | December 31, | ||
2022 | 2021 | ||
$ | $ | ||
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | 12,910,069 | 7,780,989 | |
Trade receivables | 2,910,672 | 2,092,842 | |
Other receivables | 79,856 | 45,850 | |
Inventories (note 3) | 2,459,554 | 1,644,893 | |
Prepaid expenses and deposits | 153,873 | 162,919 | |
Total Current Assets | 18,514,024 | 11,727,493 | |
Non-Current Assets | |||
Investment tax credits receivable | 766,629 | 766,629 | |
Deposits | 79,539 | 79,539 | |
Licences (note 4) | 13,329 | 15,551 | |
Property and equipment (note 5) | 16,413,179 | 17,499,774 | |
Deferred tax assets | – | 439,063 | |
Total Non-Current Assets | 17,272,676 | 18,800,556 | |
TOTAL ASSETS | 35,786,700 | 30,528,049 | |
LIABILITIES AND EQUITY | |||
Current Liabilities | |||
Accounts payable and accrued liabilities | 528,746 | 682,057 | |
Current portion of lease liabilities (note 6) | 313,290 | 290,055 | |
Total Current Liabilities | 842,036 | 972,112 | |
Non-Current Liabilities | |||
Long-term lease liabilities (note 6) | 2,119,391 | 2,358,862 | |
Deferred tax liabilities | 959,425 | – | |
Total Non-Current Liabilities | 3,078,816 | 2,358,862 | |
TOTAL LIABILITIES | 3,920,852 | 3,330,974 | |
Equity | |||
Share capital (note 7 (b)) | 16,685,419 | 16,557,401 | |
Contributed surplus (note 7 (e)) | 4,701,238 | 4,680,690 | |
Retained earnings | 10,479,191 | 5,958,984 | |
Total Equity | 31,865,848 | 27,197,075 | |
TOTAL LIABILITIES AND EQUITY | 35,786,700 | 30,528,049 |
CEAPRO INC. | ||||||||
Condensed Interim Consolidated Statements of Net Income and Comprehensive Income | ||||||||
Unaudited | ||||||||
Quarters | Nine Months | |||||||
Ended September 30, | Ended September 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
$ | $ | $ | $ | |||||
Revenue (note 13) | 3,845,370 | 4,522,980 | 15,517,393 | 13,633,354 | ||||
Cost of goods sold | 1,767,400 | 1,573,655 | 5,845,479 | 5,787,608 | ||||
Gross margin | 2,077,970 | 2,949,325 | 9,671,914 | 7,845,746 | ||||
Research and product development | 314,250 | 1,403,186 | 1,213,455 | 3,050,544 | ||||
General and administration | 869,110 | 766,605 | 2,707,430 | 2,431,659 | ||||
Sales and marketing | 6,160 | 4,957 | 20,707 | 34,557 | ||||
Finance costs (note 9) | 31,382 | 37,684 | 151,592 | 169,938 | ||||
Income from operations | 857,068 | 736,893 | 5,578,730 | 2,159,048 | ||||
Other (income) expense (note 10) | (271,162 | ) | (138,381 | ) | (339,965 | ) | 92,426 | |
Income before tax | 1,128,230 | 875,274 | 5,918,695 | 2,066,622 | ||||
Deferred income tax expense | 266,582 | – | 1,398,488 | – | ||||
Total net income and comprehensive income for the period | 861,648 | 875,274 | 4,520,207 | 2,066,622 | ||||
Net income per common share (note 16): | ||||||||
Basic | 0.01 | 0.01 | 0.06 | 0.03 | ||||
Diluted | 0.01 | 0.01 | 0.06 | 0.03 | ||||
Weighted average number of common shares outstanding (note 16): | ||||||||
Basic | 78,192,923 | 77,684,017 | 77,873,310 | 77,669,747 | ||||
Diluted | 78,817,665 | 78,740,532 | 78,519,944 | 78,694,469 | ||||
CEAPRO INC. | |||||
Condensed Interim Consolidated Statements of Cash Flows | |||||
Unaudited | |||||
2022 | 2021 | ||||
Nine Months Ended September 30, | $ | $ | |||
OPERATING ACTIVITIES | |||||
Net income for the period | 4,520,207 | 2,066,622 | |||
Adjustments for items not involving cash | |||||
Finance costs | 96,592 | 106,390 | |||
Depreciation and amortization | 1,415,361 | 1,408,392 | |||
Gain on disposal of equipment | – | (5,000 | ) | ||
Accretion | – | 8,548 | |||
Deferred income tax expense | 1,398,488 | – | |||
Share-based payments | 72,926 | 13,672 | |||
7,503,574 | 3,598,624 | ||||
CHANGES IN NON-CASH WORKING CAPITAL ITEMS | |||||
Trade receivables | (817,830 | ) | (696,335 | ) | |
Other receivables | (34,006 | ) | 62,702 | ||
Inventories | (814,661 | ) | (322,192 | ) | |
Prepaid expenses and deposits | 9,046 | 137,618 | |||
Accounts payable and accrued liabilities relating to operating activities | (105,557 | ) | 163,017 | ||
(1,763,008 | ) | (655,190 | ) | ||
Net income for the period adjusted for non-cash and working capital items | 5,740,566 | 2,943,434 | |||
Interest paid | (96,592 | ) | (106,390 | ) | |
CASH GENERATED FROM OPERATIONS | 5,643,974 | 2,837,044 | |||
INVESTING ACTIVITIES | |||||
Purchase of property and equipment | (326,544 | ) | (514,305 | ) | |
Proceeds from sale of equipment | – | 5,000 | |||
Accounts payable and accrued liabilities relating to investing activities | (47,754 | ) | (132,994 | ) | |
CASH USED IN INVESTING ACTIVITIES | (374,298 | ) | (642,299 | ) | |
FINANCING ACTIVITIES | |||||
Stock options exercised | 75,640 | 26,725 | |||
Repayment of lease liabilities | (216,236 | ) | (180,285 | ) | |
CASH USED IN FINANCING ACTIVITIES | (140,596 | ) | (153,560 | ) | |
Increase in cash and cash equivalents | 5,129,080 | 2,041,185 | |||
Cash and cash equivalents at beginning of the period | 7,780,989 | 5,369,029 | |||
Cash and cash equivalents at end of the period | 12,910,069 | 7,410,214 |
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.
Forward-looking Statements
This press release contains forward-looking statements based on our assessment of Ceapro’s future plans and operations as of the date of this press release. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as ‘may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties. Readers are cautioned that the assumptions used in the preparation of forward-looking information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements in this press release. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Ceapro will derive from them. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise unless required by law.
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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