EDMONTON, Alberta, Aug. 29, 2023 (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, 2023.
“While sales from the base business are trailing by one quarter for the first half of 2023 as compared to the previous all-time record period last year, we are very encouraged by the significant advancements in new products and technologies development. Further, over the past quarter we remained very active with our activities related to strategic corporate initiatives. Our business remains solid, and we believe we are positioned now for the return of a more consistent re-ordering pattern from one of our major customers. We are also very pleased with the recent signing of an extended supply and distribution agreement reinforcing our relationship with longtime partner Symrise while securing our base business for the upcoming years,” stated Gilles Gagnon, M.Sc., MBA, President and CEO.
Corporate and Operational Highlights
Pipeline Development
The Company’s focus is on avenanthramides, beta glucan from oat and yeast and new chemical complexes/delivery systems.
Clinical Development:
Avenanthramides (AVS)
Formulation:
Phase 1-2a Clinical Trial:
Pre-Clinical Development:
Avenanthramides & Oat Beta Glucan
Wound Healing-Tissue Regeneration:
Yeast Beta Glucan (YBG) - Potential Inhalo-Therapeutic
Immune/energy booster:
Yeast beta glucan is the product that will be used for the PGX scale-up project at pilot scale levels of 50L and 100L vessels.
Technology
Malted Technology (Avenanthramides)
Pressurized Gas eXpanded Technology (PGX)
Corporate
Subsequent to the Quarter
Financial Highlights for the Second Quarter and the Six-Month Period Ended June 30, 2022
“Despite a slower start to the year, our business remains solid, and we expect the reordering pattern from one major customer to resume shortly. Given our healthy balance sheet and the re-affirmed vote of confidence from our longtime partner Symrise, we will continue to leverage on our base business to enable the development of new products and technologies like the planned Phase 1-2a clinical trial with avenanthramides, the scale-up of the PGX Technology for the development of YBG as an immune modulator and the commercial scale-up of a malting technology to enable the production and selling of enriched oat flour with high concentration of avenanthramides to serve important nutraceutical market segments. The Company expects to complete these projects using cash on hand in 2023 while continuing to assess different, strategic market initiatives to unlock value,” concluded Mr. Gagnon.
CEAPRO INC. | ||
Condensed Interim Consolidated Balance Sheets | ||
Unaudited | ||
June 30, | December 31, | |
2023 | 2022 | |
$ | $ | |
ASSETS | ||
Current Assets | ||
Cash and cash equivalents | 11,306,260 | 13,810,998 |
Trade receivables | 1,563,404 | 2,820,300 |
Other receivables | 77,132 | 64,808 |
Inventories (note 4) | 5,144,636 | 3,757,040 |
Prepaid expenses and deposits | 143,961 | 135,133 |
Total Current Assets | 18,235,393 | 20,588,279 |
Non-Current Assets | ||
Investment tax credits receivable | 854,895 | 854,895 |
Deposits | 76,954 | 76,954 |
Licences (note 5) | 11,106 | 12,588 |
Property and equipment (note 6) | 15,304,089 | 16,201,755 |
Total Non-Current Assets | 16,247,044 | 17,146,192 |
TOTAL ASSETS | 34,482,437 | 37,734,471 |
LIABILITIES AND EQUITY | ||
Current Liabilities | ||
Accounts payable and accrued liabilities | 424,283 | 1,730,377 |
Current portion of lease liabilities (note 7) | 386,316 | 370,460 |
Total Current Liabilities | 810,599 | 2,100,837 |
Non-Current Liabilities | ||
Long-term lease liabilities (note 7) | 2,052,972 | 2,248,577 |
Deferred tax liabilities | 674,772 | 1,095,968 |
Total Non-Current Liabilities | 2,727,744 | 3,344,545 |
TOTAL LIABILITIES | 3,538,343 | 5,445,382 |
Equity | ||
Share capital (note 8 (b)) | 16,697,712 | 16,694,625 |
Contributed surplus (note 8 (e)) | 4,905,808 | 4,714,404 |
Retained earnings | 9,340,574 | 10,880,060 |
Total Equity | 30,944,094 | 32,289,089 |
TOTAL LIABILITIES AND EQUITY | 34,482,437 | 37,734,471 |
CEAPRO INC. | ||||||||
Condensed Interim Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income | ||||||||
Unaudited | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Restated | Restated | |||||||
(note 3) | (note 3) | |||||||
$ | $ | $ | $ | |||||
Revenue (note 14) | 1,868,758 | 5,500,399 | 5,363,569 | 11,672,023 | ||||
Cost of goods sold | 798,488 | 1,674,091 | 2,687,461 | 4,131,193 | ||||
Gross margin | 1,070,270 | 3,826,308 | 2,676,108 | 7,540,830 | ||||
Research and product development | 926,775 | 543,924 | 1,500,462 | 899,205 | ||||
General and administration | 1,625,066 | 1,069,275 | 3,146,511 | 1,838,320 | ||||
Sales and marketing | 13,458 | 9,248 | 21,637 | 14,547 | ||||
Finance costs (note 10) | 32,644 | 32,175 | 121,444 | 120,210 | ||||
(Loss) income from operations | (1,527,673 | ) | 2,171,686 | (2,113,946 | ) | 4,668,548 | ||
Other income (note 11) | (57,389 | ) | (191,841 | ) | (153,264 | ) | (68,803 | ) |
(Loss) income before tax | (1,470,284 | ) | 2,363,527 | (1,960,682 | ) | 4,737,351 | ||
Deferred tax (benefit) expense | (315,848 | ) | 558,461 | (421,196 | ) | 1,119,356 | ||
Total net (loss) income and comprehensive (loss) income for the period | (1,154,436 | ) | 1,805,066 | (1,539,486 | ) | 3,617,995 | ||
Net (loss) income per common share (note 17): | ||||||||
Basic | (0.01 | ) | 0.02 | (0.02 | ) | 0.05 | ||
Diluted | (0.01 | ) | 0.02 | (0.02 | ) | 0.05 | ||
Weighted average number of common shares outstanding (note 17): | ||||||||
Basic | 78,253,177 | 77,734,865 | 78,252,514 | 77,710,854 | ||||
Diluted | 78,253,177 | 78,474,139 | 78,252,514 | 78,405,883 | ||||
CEAPRO INC. | ||||
Condensed Interim Consolidated Statements of Cash Flows | ||||
Unaudited | ||||
2023 | 2022 | |||
Restated | ||||
(note 3) | ||||
Six Months Ended June 30, | $ | $ | ||
OPERATING ACTIVITIES | ||||
Net (loss) income for the period | (1,539,486 | ) | 3,617,995 | |
Adjustments for items not involving cash | ||||
Finance costs | 66,444 | 65,210 | ||
Depreciation and amortization | 971,183 | 939,191 | ||
Deferred income tax (benefit) expense | (421,196 | ) | 1,119,356 | |
Share-based payments | 192,491 | 39,924 | ||
(730,564 | ) | 5,781,676 | ||
CHANGES IN NON-CASH WORKING CAPITAL ITEMS | ||||
Trade receivables | 1,256,896 | (1,267,909 | ) | |
Other receivables | (12,324 | ) | (44,873 | ) |
Inventories | (1,387,596 | ) | (418,152 | ) |
Prepaid expenses and deposits | 35,116 | (7,059 | ) | |
Accounts payable and accrued liabilities relating to operating activities | (1,307,917 | ) | (20,582 | ) |
(1,415,825 | ) | (1,758,575 | ) | |
Net (loss) income for the period adjusted for non-cash and working capital items | (2,146,389 | ) | 4,023,101 | |
Interest paid | (66,444 | ) | (65,210 | ) |
CASH (USED IN) GENERATED FROM OPERATIONS | (2,212,833 | ) | 3,957,891 | |
INVESTING ACTIVITIES | ||||
Purchase of property and equipment | (72,035 | ) | (239,995 | ) |
Deposits relating to the purchase of equipment | (43,944 | ) | - | |
Accounts payable and accrued liabilities relating to investing activities | 1,823 | (47,754 | ) | |
CASH USED IN INVESTING ACTIVITIES | (114,156 | ) | (287,749 | ) |
FINANCING ACTIVITIES | ||||
Stock options exercised | 2,000 | 60,160 | ||
Repayment of lease liabilities | (179,749 | ) | (143,294 | ) |
CASH USED IN FINANCING ACTIVITIES | (177,749 | ) | (83,134 | ) |
(Decrease) increase in cash and cash equivalents | (2,504,738 | ) | 3,587,008 | |
Cash and cash equivalents at beginning of the period | 13,810,998 | 7,780,989 | ||
Cash and cash equivalents at end of the period | 11,306,260 | 11,367,997 | ||
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: This email address is being protected from spambots. You need JavaScript enabled to view it.
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
Last Trade: | C$0.25 |
Daily Volume: | 0 |
Market Cap: | C$19.570M |
February 23, 2024 December 13, 2023 November 29, 2023 November 27, 2023 |
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