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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