– 2018 marked by Company’s catalytic pivot from contract manufacturer to
biopharmaceutical company and validation of Ceapro’s dedication to innovation –
EDMONTON, Alberta, April 11, 2019 (GLOBE NEWSWIRE) -- Ceapro Inc. (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 operational highlights and financial results for the fourth quarter and full year ended December 31, 2018.
2018 Corporate and Operational Highlights:
Innovation
Pipeline Development:
Technology:
Bioprocessing Operations:
Legal:
Marketing & Sales:
Subsequent to Year End:
“2018 was marked by tremendous advancements on many fronts and I believe we have a solid foundation established for growth. We will continue to leverage our cosmeceuticals base business allowing the Company to pursue the transition to a new business model from a contract manufacturer to a biopharmaceutical company involved in nutraceuticals and pharmaceuticals. As part of new product development, Ceapro will develop formulations potentially allowing delivery of bioactives through different modes of administration, including oral, topical, sub-lingual, and intranasally. The Juvente line of products will mostly be used for the development of topical/transdermal delivery systems using Ceapro’s proprietary new chemical complexes developed leveraging our PGX technology,” stated Gilles Gagnon, M.Sc., MBA, President and CEO, of Ceapro.
Financial Highlights for the Fourth Quarter and the Full Year 2018 Ended December 31, 2018
“Moving forward, we are deploying strategic efforts to expand and optimize our sales through our distribution network and mostly through direct marketing and sales activities. We are also very active in business development activities for out-licensing of selective Ceapro products. From a manufacturing perspective, the recently announced qualification of Ceapro’s bioprocessing sites have triggered considerable discussions with potential partners. Ceapro has the capability to work from two sites based in Alberta: the Leduc site, a government-owned bio incubator and the Edmonton site, Ceapro’s new facility which is now commissioned and validated,” added Mr. Gagnon. “Given that both sites were successfully audited by major customers, and given new opportunities that are arising especially for applications of proprietary new chemical complexes, Ceapro will continue to operate the two sites for an extended period depending on the results from an expected one-year feasibility study with a project dedicated to functional food. Should the results be positive, Leduc, in addition to be a back-up for Edmonton, would be dedicated for production of actives with application in the nutraceuticals and functional food industry while Edmonton will be for cosmeceuticals and potentially pharmaceuticals.”
“I strongly believe Ceapro has all the key components for success based on a very solid foundation, a highly competent team, a healthy balance sheet and a very strong technology and product portfolio with the potential to access key large markets,” concluded Mr. Gagnon.
CEAPRO INC. | ||||
Consolidated Balance Sheets | ||||
December 31, | December 31, | |||
2018 | 2017 | |||
$ | $ | |||
ASSETS | ||||
Current Assets | ||||
Cash and cash equivalents | 1,844,134 | 6,173,895 | ||
Trade receivables | 3,015,344 | 1,246,413 | ||
Other receivables | 46,899 | 213,512 | ||
Inventories (note 6) | 710,708 | 1,085,388 | ||
Prepaid expenses and deposits | 518,219 | 277,600 | ||
6,135,304 | 8,996,808 | |||
Non-Current Assets | ||||
Investment tax credits receivable | 607,700 | 607,700 | ||
Deposits | 88,340 | 87,816 | ||
Licences (note 7) | 24,440 | 27,403 | ||
Property and equipment (note 8) | 17,947,967 | 17,379,839 | ||
Intangible assets (note 9) | - | 489,733 | ||
Goodwill (note 10) | - | 218,606 | ||
Deferred tax assets (note 19 (b)) | 520,872 | - | ||
19,189,319 | 18,811,097 | |||
TOTAL ASSETS | 25,324,623 | 27,807,905 | ||
LIABILITIES AND EQUITY | ||||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 949,878 | 979,626 | ||
Current portion of long-term debt (note 11) | 336,956 | 860,871 | ||
Royalty provision - Ceapro Inc. (note 12 (a) (c)) | - | 778,636 | ||
Royalty provision - Ceapro Technology Inc. (note 12 (b) (c)) | - | 1,375,000 | ||
Current portion of CAAP loan (note 14) | 72,942 | 72,942 | ||
1,359,776 | 4,067,075 | |||
Non-Current Liabilities | ||||
Long-term debt (note 11) | 110,350 | 430,622 | ||
CAAP loan (note 14) | 115,216 | 161,424 | ||
Deferred tax liabilities (note 19 (b)) | 524,280 | 604,835 | ||
749,846 | 1,196,881 | |||
TOTAL LIABILITIES | 2,109,622 | 5,263,956 | ||
Equity | ||||
Share capital (note 13 (b)) | 16,320,522 | 15,565,522 | ||
Contributed surplus (note 13 (f)) | 4,501,444 | 4,269,855 | ||
Retained earnings | 2,393,035 | 2,708,572 | ||
23,215,001 | 22,543,949 | |||
TOTAL LIABILITIES AND EQUITY | 25,324,623 | 27,807,905 | ||
CEAPRO INC. | ||||
Consolidated Statements of Net Loss and Comprehensive Loss | ||||
2018 | 2017 | |||
Year Ended December 31, | $ | $ | ||
Revenue (note 21) | 11,592,666 | 12,925,825 | ||
Cost of goods sold | 5,454,468 | 5,653,707 | ||
Gross margin | 6,138,198 | 7,272,118 | ||
Research and product development | 2,665,838 | 1,606,332 | ||
General and administration | 3,000,005 | 2,840,605 | ||
Sales and marketing | 225,549 | 32,106 | ||
Finance costs (note 17) | 118,728 | 136,560 | ||
Income from operations | 128,078 | 2,656,515 | ||
Other expenses (note 16) | (1,123,061 | ) | (929,696 | ) |
Royalty provision - Ceapro Inc. (note 12 (a)) | - | (778,636 | ) | |
Royalty provision - Ceapro Technology Inc. (note 12 (b)) | - | (1,375,000 | ) | |
Impairment of intangible assets (note 9) | (430,533 | ) | - | |
Impairment of goodwill (note 10) | (218,606 | ) | - | |
Gain on settlement of royalty provisions (note 12 (c)) | 722,895 | - | ||
Loss before tax | (921,227 | ) | (426,817 | ) |
Income taxes | ||||
Current tax recovery | 4,263 | 9,345 | ||
Deferred tax benefit (expense) | 601,427 | (540,803 | ) | |
Income tax benefit (expense) (note 19 (a)) | 605,690 | (531,458 | ) | |
Total comprehensive loss for the year | (315,537 | ) | (958,275 | ) |
Net loss per common share (note 27): | ||||
Basic | (0.00 | ) | (0.01 | ) |
Diluted | (0.00 | ) | (0.01 | ) |
Weighted average number of common shares outstanding (note 27): | ||||
Basic | 76,201,191 | 75,343,907 | ||
Diluted | 76,201,191 | 75,343,907 | ||
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
Jenene Thomas Communications, LLC
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: czo@jtcir.com
Issuer:
Gilles R. Gagnon, M.Sc., MBA
President & CEO
T: 780-421-4555
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