Canada Markets closed
  • S&P/TSX

    21,216.15
    +3.75 (+0.02%)
     
  • S&P 500

    4,544.90
    -4.88 (-0.11%)
     
  • DOW

    35,677.02
    +73.94 (+0.21%)
     
  • CAD/USD

    0.8091
    +0.0007 (+0.0890%)
     
  • BTC-CAD

    75,076.12
    -692.41 (-0.91%)
     
  • CMC Crypto 200

    1,453.34
    -49.70 (-3.31%)
     
  • GOLD FUTURES

    1,793.10
    +11.20 (+0.63%)
     
  • RUSSELL 2000

    2,291.27
    -4.91 (-0.21%)
     
  • 10-Yr Bond

    1.6550
    -0.0210 (-1.25%)
     
  • NASDAQ

    15,090.20
    -125.50 (-0.82%)
     
  • VOLATILITY

    15.43
    +0.42 (+2.80%)
     
  • FTSE

    7,204.55
    +14.25 (+0.20%)
     
  • NIKKEI 225

    28,804.85
    +96.25 (+0.34%)
     
  • CAD/EUR

    0.6942
    -0.0010 (-0.14%)
     

Ceapro Inc. Reports 2021 Second Quarter and Six-Month Financial Results and Operational Highlights

  • Oops!
    Something went wrong.
    Please try again later.
·9 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Company continues to increase R&D activities to advance clinical and preclinical programs

– Second quarter sales of $4,409,000 compared to $4,666,000 for second quarter 2020 –

– Cash generated from operations of $2,128,000 in Q2 2021 compared to $2,195,000 in Q2 2020 –

Maintained production operations during COVID-19 pandemic, providing customers with essential products while ensuring the health and safety of our employees –

EDMONTON, Alberta, Aug. 26, 2021 (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, 2021.

“Progress continues on all fronts from production operations to research and development, allowing us to advance our pipeline while expanding our business model. With our newly formed network of highly renowned experts from University of Alberta, McMaster University, the Montreal Heart Institute, and the Angiogenesis Foundation, we have implemented a comprehensive strategic research plan that we believe enables us to address immune/inflammation-based and lifestyle diseases at various stages and from all angles. Additionally, with upcoming results expected in the fourth quarter of this year for Ceapro’s very first clinical trial, I believe we are well positioned for the next steps in becoming a premier life sciences company. The Company has exciting things on the horizon and we are committed to building on momentum,” stated Gilles Gagnon, M.Sc., MBA, President and CEO.

Corporate and Operational Highlights

Pipeline Development:

  • Announced successful completion of collaborative research and development program with University of Alberta. The program developed several new chemical complexes as potential delivery systems and demonstrated the possibility of drying peptides using Pressurized Gas eXpanded (PGX) Technology.

  • Initiated bioavailability studies with University of Alberta for new chemical complexes yeast beta glucan-CoQ10 and alginate-CoQ10.

  • Resumed research activities with McMaster University to develop an inhalable therapeutic for COVID-19 using yeast beta glucan.

  • Completed patient enrollment in clinical study evaluating beta glucan as a cholesterol-lowering agent. Last patient last visit is expected by end of September 2021, followed by locking of data base, unblinding of the study and topline results expected in Q4 2021.

Technology:

  • Pursued technical upgrades of PGX demo plant in Edmonton including initiation of commercial scale up of impregnation unit to produce chemical complexes.

  • Initiated engineering design for PGX commercial scale unit. Final decision on the type and location of future commercial scale PGX unit to be announced during Q4 2021.

Production Operations:

  • Successfully passed thorough audits conducted by two major customers for the Edmonton facility, which is now housing all production operations for the Company.

Corporate:

  • Pursued out-licensing discussions for PGX-processed new chemical complexes.

Subsequent to Quarter:

  • Announced research agreement with Montreal Heart Institute for a Phase 1 clinical trial assessing safety and tolerability of pharmaceutical grade avenanthramides.

  • Announced research agreement with Boston-based Angiogenesis Foundation to assess in vivo bioefficacy of oat beta glucan and avenanthramides in angiogenesis, blood vessel repairs, wound healing and tissue regeneration in various inflammation-based diseases and conditions like COVID-19 presenting damages of the lung blood vessels.

Financial Highlights for the Second Quarter and the Six-Month Period Ended June 30, 2021

  • Total sales of $4,409,000 for the second quarter of 2021 and $9,110,000 for the first six months of 2021 compared to $4,666,000 and $8,939,000 for the comparative periods in 2020.

    Sales being made in USA dollars and then reported in CDN dollars, it is noteworthy to look at the impact of the exchange rate (USD/CDN) from year to year. In fact, the Company has recorded respective sales in USD of $3.6M and USD $7.3M for the second quarter and the first six months of 2021 as compared to USD $3.4M and USD $6.5M for the comparative periods of 2020, representing a year-to-date effective increase of 12% in 2021.

  • Net profit of $676,000 for the second quarter of 2021 and $1,191,000 for the first six months of 2021 compared to a net profit of $1,077,000 and $2,203,000 for the comparative periods in 2020.

  • Cash flows generated from operations of $2,433,000 for the first six months of 2021 vs $2,727,000 in 2020.

  • Positive working capital balance of $9,303,000 as of June 30, 2021.

“The ability of our business to successfully navigate through the challenging second quarter business environment is a testament to the commitment and hard work of our dedicated employees, and a measurable indication of the operational improvements generated by our strategic investments of the past few years,” continued Mr. Gagnon. “Looking ahead, while considering the ongoing potential economic impact related to the new surge of COVID-19, we believe Ceapro is well-positioned to once again deliver solid growth in 2021. With a strong and very clean balance sheet, a group of dedicated people, and a solid base business coupled with the innovative technologies and products that we have developed to enable us to expand, Ceapro is poised to emerge as a successful life science company.”

CEAPRO INC.

Consolidated Balance Sheets

Unaudited

June 30,

December 31,

2021

2020

$

$

ASSETS

Current Assets

Cash and cash equivalents

7,269,428

5,369,029

Trade receivables

1,801,568

2,019,723

Other receivables

45,913

102,224

Inventories (note 3)

1,168,163

1,210,079

Prepaid expenses and deposits

236,932

348,845

10,522,004

9,049,900

Non-Current Assets

Investment tax credits receivable

607,700

607,700

Deposits

82,124

82,124

Licences (note 4)

17,032

18,514

Property and equipment (note 5)

18,029,316

18,591,189

Deferred tax assets

874,304

874,304

19,610,476

20,173,831

TOTAL ASSETS

30,132,480

29,223,731

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable and accrued liabilities

857,731

1,067,622

Current portion of lease liabilities (note 6)

283,204

250,658

Current portion of CAAP loan (note 8)

77,855

72,263

1,218,790

1,390,543

Non-Current Liabilities

Long-term lease liabilities (note 6)

2,505,623

2,648,917

Deferred tax liabilities

874,304

874,304

3,379,927

3,523,221

TOTAL LIABILITIES

4,598,717

4,913,764

Equity

Share capital (note 7 (b))

16,555,619

16,511,067

Contributed surplus (note 7 (e))

4,670,289

4,682,393

Retained earnings

4,307,855

3,116,507

25,533,763

24,309,967

TOTAL LIABILITIES AND EQUITY

30,132,480

29,223,731


CEAPRO INC.

Consolidated Statements of Net Income and Comprehensive Income

Unaudited

Quarters Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

$

$

$

$

Revenue (note 14)

4,408,631

4,665,971

9,110,374

8,939,345

Cost of goods sold

1,770,153

2,079,270

4,213,953

3,980,493

Gross margin

2,638,478

2,586,701

4,896,421

4,958,852

Research and product development

830,511

399,797

1,647,358

902,339

General and administration

952,847

838,263

1,665,054

1,703,297

Sales and marketing

16,362

29,207

29,600

77,435

Finance costs (note 11)

38,344

44,583

132,254

146,192

Income from operations

800,414

1,274,851

1,422,155

2,129,589

Other (expenses) income (note 10)

(123,942

)

(197,812

)

(230,807

)

73,505

Income before tax

676,472

1,077,039

1,191,348

2,203,094

Income taxes

-

-

-

-

Total comprehensive income for the period

676,472

1,077,039

1,191,348

2,203,094

Net income per common share (note 17):

Basic

0.01

0.01

0.02

0.03

Diluted

0.01

0.01

0.02

0.03

Weighted average number of common shares outstanding (note 17):

Basic

77,673,832

77,608,341

77,662,495

77,573,327

Diluted

78,684,303

77,980,876

78,684,344

77,930,529


CEAPRO INC.

Consolidated Statements of Cash Flows

Unaudited

2021

2020

Six Months Ended June 30,

$

$

OPERATING ACTIVITIES

Net income for the period

1,191,348

2,203,094

Adjustments for items not involving cash

Finance costs

71,662

79,674

Transaction costs

-

1,108

Depreciation and amortization

937,356

920,521

Accretion

5,592

10,410

Share-based payments

6,828

108,147

Net income for the period adjusted for non-cash items

2,212,786

3,322,954

CHANGES IN NON-CASH WORKING CAPITAL ITEMS

Trade receivables

218,155

600,990

Other receivables

56,311

(43,599

)

Inventories

41,916

(592,489

)

Prepaid expenses and deposits

51,179

(33,088

)

Accounts payable and accrued liabilities relating to operating activities

(75,337

)

(448,200

)

Total changes in non-cash working capital items

292,224

(516,386

)

Net income for the period adjusted for non-cash and working capital items

2,505,010

2,806,568

Interest paid

(71,662

)

(79,674

)

CASH GENERATED FROM OPERATIONS

2,433,348

2,726,894

INVESTING ACTIVITIES

Purchase of property and equipment

(277,062

)

(38,230

)

Purchase of leasehold improvements

(19,472

)

-

Deposits relating to investment in equipment

(16,733

)

(50,203

)

Accounts payable and accrued liabilities relating to investing activities

(134,554

)

-

CASH USED IN INVESTING ACTIVITIES

(447,821

)

(88,433

)

FINANCING ACTIVITIES

Stock options exercised

25,620

-

Repayment of long-term debt

-

(97,507

)

Repayment of lease liabilities

(110,748

)

(130,829

)

CASH USED IN FINANCING ACTIVITIES

(85,128

)

(228,336

)

Increase in cash and cash equivalents

1,900,399

2,410,125

Cash and cash equivalents at beginning of the period

5,369,029

1,857,195

Cash and cash equivalents at end of the period

7,269,428

4,267,320

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: czo@jtcir.com

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.


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting