EDMONTON, Alberta, Aug. 28, 2018 (GLOBE NEWSWIRE) — (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 quarter ended June 30, 2018.
“Ceapro remains in a period of exciting ongoing multiple transitions. While we continue to rely on our existing base business model in cosmeceuticals through a distribution network, we are accelerating the diversification of this model by investing in marketing and sales to get closer to the customer through the direct offering of both of Ceapro’s active ingredients and the Juvente line of top class cosmeceutical products. We will also further invest in clinical trials for new product applications for our value drivers, avenanthramides and beta glucan, to allow the expansion of Ceapro to its next phase of growth into the profitable nutraceutical sector. Positive results recently announced with avenanthramides as an anti-inflammation product and with beta glucan as part of a new water-soluble and bioavailable chemical entity (Beta Gucan/CoQ10) represent important steps in facilitating this transition,” stated of Ceapro.
Recent Operational Highlights
Subsequent to quarter
“On the financial front, our fundamentals remain solid despite lower sales than the comparative periods in 2017. We look forward to expand and optimize our sales through direct marketing and sales efforts,” added Mr. Gagnon.
Financial Highlights for the Second Quarter and the Six-Month Period Ended June 30, 2018
“We have continued to make progress over the course of the first half of the year in this important transitional period for the Company. By building a start-up within an existing business, coupled with a change in business model, we believe we are well positioned for success at all levels, and we look forward to building shareholder value in the near and long term,” concluded Mr. Gagnon.
CEAPRO INC. Consolidated Balance Sheets Unaudited June 30,December 31, 20182017 $ $ ASSETS Current Assets Cash and cash equivalents 5,408,581 6,173,895Trade receivables 1,306,368 1,246,413Other receivables 197,543 213,512Inventories (note 5) 881,286 1,085,388Prepaid expenses and deposits 289,652 277,600 8,083,430 8,996,808Non-Current Assets Investment tax credits receivable 607,700 607,700Deposits 90,925 87,816Licences (note 6) 25,921 27,403Property and equipment (note 7) 17,899,395 17,379,839Intangible assets (note 8) 460,133 489,733Goodwill (note 9) 218,606 218,606 19,302,680 18,811,097TOTAL ASSETS 27,386,110 27,807,905 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued liabilities 829,570 979,626Current portion of long-term debt (note 10) 667,952 860,871Royalty provision – Ceapro Inc. (note 11 (a)) 778,636 778,636Royalty provision – Ceapro Technology Inc. (note 11 (b)) 1,375,000 1,375,000Contract liabilities 463,763 – Current portion of CAAP loan (note 13) 77,858 72,942 4,192,779 4,067,075Non-Current Liabilities Long-term debt (note 10) 198,115 430,622CAAP loan (note 13) 174,644 161,424Deferred tax liabilities 505,835 604,835 878,594 1,196,881TOTAL LIABILITIES 5,071,373 5,263,956 Equity Share capital (note 12 (b)) 15,670,522 15,565,522Contributed surplus (note 12 (f)) 4,396,543 4,269,855Retained earnings 2,247,672 2,708,572 22,314,737 22,543,949TOTAL LIABILITIES AND EQUITY 27,386,110 27,807,905
CEAPRO INC. Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)Unaudited Quarters Ended June 30,Six Months Ended June 30, 017 $ $ $ $ Revenue (note 17) 2,731,375 3,173,225 5,000,955 6,356,735Cost of goods sold 1,177,636 1,155,231 2,345,930 2,627,555 Gross margin 1,553,739 2,017,994 2,655,025 3,729,180 Research and product development 659,226 301,138 998,039 897,162General and administration 765,984 686,686 1,513,720 1,526,026Sales and marketing 31,598 4,727 47,621 9,017Finance costs (note 16) 15,481 21,711 86,384 100,176 Income from operations 81,450 1,003,732 9,261 1,196,799 Other expenses (note 15) (282,743) (246,797) (569,161) (427,840) Income (loss) before tax (201,293) 756,935 (559,900) 768,959 Income taxes Current tax recovery – – – 9,344 Deferred tax benefit (expense) 35,600 (386,513) 99,000 (390,113) Income tax benefit (expense) 35,600 (386,513) 99,000 (380,769) Total comprehensive income (loss) for the period (165,693) 370,422 (460,900) 388,190 Net income (loss) per common share (note 22): Basic (0.00) 0.00 (0.01) 0.01Diluted (0.00) 0.00 (0.01) 0.01 Weighted average number of common shares outstanding (note 22): Basic 75,756,859 75,344,730 75,734,815 75,256,385Diluted 75,756,859 76,760,043 75,734,815 76,821,870
The complete financial statements are available for review on SEDAR at and on the Company’s website at .
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 .
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