Ceapro Inc. Reports Fourth Quarter and Full Year 2019 Results and Highlights

2019 marked by Company’s progression as a development-stage biopharmaceutical company dedicated to innovation

EDMONTON, Alberta, April 16, 2020 (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 operational highlights and financial results for the fourth quarter and full year ended December 31, 2019.

“Over the course of 2019, in addition to having delivered another solid year with our base business serving the cosmeceutical sector, Ceapro took the strategic steps to maintain our vision to transition to a new business model from a contract manufacturer to a biopharmaceutical company offering innovative products and delivery systems to the nutraceutical and biopharmaceuticals sectors. To achieve this vision, our team continues to work diligently to utilize our proprietary technologies and innovate new formulations. As part of new product development, we are developing formulations that potentially allow delivery of bioactives through different modes of administration, including oral, topical, sub-lingual, and intranasally,” stated Gilles Gagnon, M.Sc., MBA, President and CEO, of Ceapro. “We are advancing the development of these topical/transdermal delivery systems using our proprietary new chemical complexes developed leveraging our PGX technology and will also implement some of them in our existing line of Juvente cosmeceutical products.”

2019 Corporate and Operational Highlights:

Pipeline Development:

  • Demonstrated and presented the versality of PGX technology to simultaneously dry, purify, micronize and functionalize proteins, peptides, and polysaccharides to generate highly potent and sought-after bioactive delivery systems. Used the PGX technology to make fibrous structure that were successfully tested in wound healing applications. Developed at the pilot scale PGX processed materials for assessment by potential commercial partners.
  • Presented positive results for avenanthramides at the 2019 American College of Sports Medicine Annual Meeting on May 31, 2019 in Orlando, FL. Results from bio-efficacy study with avenanthramides in exercise induced inflammation support anti-inflammatory claim for avenanthramides as a food supplement.
  • Pursued enrollment and randomization of patients for the pilot clinical trial evaluating beta glucan as a potential cholesterol reducer. 
  • Continued to monitor stability studies for liquid beta glucan and avenanthramides produced at the new manufacturing site as well as for the pharmaceutical-grade dry powder formulation of avenanthramides to be used in a human bioavailability study.
  • Presented positive key findings from PGX technology at two international scientific conferences: the Iberoamerican Conference on Supercritical Fluids held in Brazil from September 2-6, 2019, and the Symposium on Pharmaceutical Engineering Research (SPhERe) held in Germany from September 25-27, 2019.
  • Announced positive key findings from three oral presentations given at European Meeting on Supercritical Fluids held in Spain from April 12-14, 2019.


  • Received patent issuance, with protection until March 2030, in Europe and the U.S. for a technology to increase concentration of avenanthramides in oats.
  • Advanced research and development efforts to pursue the development of new PGX-dried chemical complexes for potential applications under various forms like pills, capsules, fast dissolving strips and face masks.
  • Granted patent for PGX technology in India, which represents a very large potential market with numerous contract manufacturers in the pharmaceutical industry that Ceapro believes could benefit from our PGX technology.
  • Performed technical upgrades of PGX Demo plant.
  • Conducted a technical assessment of available equipment in Europe and North America and evaluating locations for a future commercial scale-up of the PGX technology. PGX strategy to be unveiled by mid-year 2020.
  • Advanced research collaboration projects with the University of Alberta and McMaster University for the impregnation of various bioactives using PGX-processed dry beta glucan, gum arabic and alginate as potential delivery systems for multiple applications in healthcare.
  • Advanced conversations with interested potential partners to out-license applications developed using Ceapro’s innovative technology.
  • Launched several new formulations for the Juvente line of finished cosmeceutical products.

Bioprocessing Operations:

  • Successfully passed audits with additional key major customers for the Edmonton based manufacturing facility which complies with international quality systems regulations.


  • Announced financial contribution agreement with National Research Council of Canada.
  • Received a research funding award from Canadian Institutes for Health Research (CIHR) in partnership with the Natural Sciences and Engineering Research Council of Canada (NSERC) to Ceapro Inc. and McMaster University for development of drug delivery systems using PGX technology.
  • Announced the listing of Ceapro’s shares for trading on the OTCQX® Best Market, a U.S. market, under the ticker OTCQX: CRPOF. Shares are DTC eligible fast coded.
  • Participated in trade missions showcasing Ceapro’s products and technologies in France, Germany and Spain.

Subsequent to Year End:

  • Received approval from Health Canada to amend human clinical study protocol assessing beta glucan as a cholesterol-lowering single agent or as add-on therapy to statins. Approvals for this modification received from Ethics committees of all research centers (11) involved in this pan Canadian study. This is Ceapro’s first clinical trial with a proprietary, pharmaceutical grade product.
  • Received approval from Health Canada Controlled Substances and Cannabis Branch for a research license with medical cannabis for the formulation of unique solid cannabinoid delivery systems using PGX technology.

“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 also remain very active in business development activities for out-licensing selective Ceapro products and continue to advance conversations with potential partners,” commented Mr. Gagnon. “Additionally, we’d like to note that amidst the COVID-19 health pandemic, the Company’s business has not been impacted to date and we have worked hard to mitigate any potential supply chain disruptions to ensure we can reliably continue to offer our high-quality products throughout the pandemic and even beyond. The safety and health of our employees is a top priority and as such, we have instituted additional preventive measures to ensure the highest level of safety while maintaining our operations. We are incredibly grateful to our dedicated employees who are working tirelessly.”

Financial Highlights for the Fourth Quarter and the Full Year 2019 Ended December 31, 2019

  • Total sales of $3,721,000 for the fourth quarter of 2019 and $12,880,000 for the full year of 2019 compared to $4,467,000 and $11,593,000 for the comparative periods in 2018. The 11% increase of sales for the full year 2019 results from an 86% increase of beta glucan (mostly made to China) partially offset by an 8% decrease in avenanthramides. For the fourth quarter 2019, sales of beta glucan increased by 242% while avenanthramides sales decreased by 34% as compared to Q4, 2018 which was the highest quarter in Ceapro’s history.
  • Net profit of $166,000 for the fourth quarter of 2019 and a net loss of $1,133,000 for the full year of 2019 compared to a net profit of $444,000 and a net loss of $316,000 for the comparative periods in 2018. Excluding non-cash items like depreciation ($1,830,000 in 2019 vs $579,000 in 2018), net adjusted operating results show a profit of $1,113,600 in 2019 vs a loss of $6,600 in 2018.
  • Cash generated from operations of $882,000 for the full year 2019 vs cash used in operations of $2,100,000 for the full year 2018; an improvement of $3,000,000 in 2019.
  • Positive working capital balance of $4,670,000 as of December 31, 2019.

“In conclusion, I strongly believe 2020 holds a lot of opportunity for Ceapro. 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, I believe we have all the key components for success,” concluded Mr. Gagnon.

Consolidated Balance Sheets
  December 31,   December 31,  
  2019   2018  
  $   $  
Current Assets        
Cash and cash equivalents 1,857,195   1,844,134  
Trade receivables 3,659,541   3,015,344  
Other receivables 46,812   46,899  
Inventories (note 4) 669,005   710,708  
Prepaid expenses and deposits 178,908   518,219  
  6,411,461   6,135,304  
Non-Current Assets        
Investment tax credits receivable 607,700   607,700  
Deposits 85,755   88,340  
Licences (note 5) 21,477   24,440  
Property and equipment (note 6) 19,764,122   17,947,967  
Deferred tax assets (note 17 (b)) 378,643   520,872  
  20,857,697   19,189,319  
TOTAL ASSETS 27,269,158   25,324,623  
Current Liabilities        
Accounts payable and accrued liabilities 1,291,204   949,878  
Current portion of long-term debt (note 9) 111,865   336,956  
Current portion of lease liabilities (note 10) 265,123   -  
Current portion of CAAP loan (note 12) 72,942   72,942  
  1,741,134   1,359,776  
Non-Current Liabilities        
Long-term debt (note 9) -   110,350  
Long-term lease liabilities (note 10) 2,775,627   -  
CAAP loan (note 12) 61,580   115,216  
Deferred tax liabilities (note 17 (b)) 378,643   524,280  
  3,215,850   749,846  
TOTAL LIABILITIES 4,956,984   2,109,622  
Share capital (note 11 (b)) 16,401,677   16,320,522  
Contributed surplus (note 11 (e)) 4,650,090   4,501,444  
Retained earnings 1,260,407   2,393,035  
  22,312,174   23,215,001  
TOTAL LIABILITIES AND EQUITY 27,269,158   25,324,623  

Consolidated Statements of Net Loss and Comprehensive Loss
  2019   2018  
Year Ended December 31,  $    $  
Revenue (note 19) 12,880,006   11,592,666  
Cost of goods sold 7,434,654   5,454,468  
Gross margin 5,445,352   6,138,198  
Research and product development 2,393,607   2,665,838  
General and administration 2,952,488   3,000,005  
Sales and marketing 425,230   225,549  
Finance costs (note 15) 260,684   118,728  
(Loss) income from operations (586,657 ) 128,078  
Other expenses (note 14) (549,379 ) (1,123,061 )
Impairment of intangible assets (note 7) -   (430,533 )
Impairment of goodwill (note 8) -   (218,606 )
Gain on settlement of royalty provisions (note 18 (c)) -   722,895  
Loss before tax (1,136,036 ) (921,227 )
Income taxes    
Current tax recovery -   4,263  
Deferred tax benefit 3,408   601,427  
Income tax benefit (note 17 (a)) 3,408   605,690  
Total comprehensive loss for the year (1,132,628 ) (315,537 )
Net loss per common share (note 24):    
Basic (0.01 ) (0.00 )
Diluted (0.01 ) (0.00 )
Weighted average number of common shares outstanding (note 24):    
Basic 77,188,505   76,201,191  
Diluted 77,188,505   76,201,191  

Consolidated Statements of Cash Flows    
  2019   2018  
Year Ended December 31,  $    $  
Net loss for the year adjusted for non-cash and working capital items (1,132,628 ) (315,537 )
Adjustments for items not involving cash    
Finance costs 171,249   10,370  
Transaction costs 4,187   15,682  
Depreciation and amortization 1,831,744   578,603  
Foreign exchange (gain) loss on long-term debt (307 ) 5,211  
Accretion 30,248   37,676  
Deferred tax benefit (3,408 ) (601,427 )
Share-based payments 212,517   336,589  
Impairment of intangible assets -   430,533  
Impairment of goodwill -   218,606  
Gain on settlement of royalty provisions -   (722,895 )
Net loss for the year adjusted for non-cash items 1,113,602   (6,589 )
Trade receivables (644,197 ) (1,768,931 )
Other receivables 87   166,613  
Inventories 41,703   374,680  
Prepaid expenses and deposits 154,106   (163,940 )
Royalty provisions -   (780,741 )
Accounts payable and accrued liabilities relating to operating activities 388,064   97,345  
Total changes in non-cash working capital items (60,237 ) (2,074,974 )
Net loss for the year adjusted for non-cash and working capital items 1,053,365   (2,081,563 )
Interest paid (171,249 ) (40,567 )
Purchase of property and equipment (332,186 ) (1,092,744 )
Purchase of leasehold improvements (6,007 ) (85,148 )
Deposits relating to investment in equipment 187,790   (77,203 )
Accounts payable and accrued liabilities relating to investing activities (46,738 ) (127,093 )
Stock options exercised 17,284   -  
Repayment of long-term debt (339,321 ) (865,080 )
Repayment of CAAP loan (83,884 ) (83,884 )
Repayment of lease liabilities (265,993 ) -  
Grant used for purchase of leaseholds, property and equipment -   123,521  
Increase (decrease) in cash and cash equivalents 13,061   (4,329,761 )
Cash and cash equivalents at beginning of the year 1,844,134   6,173,895  
Cash and cash equivalents at end of the year 1,857,195   1,844,134  

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
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247
E: czo@jtcir.com

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


Primary Logo

Source: Ceapro Inc.