OTTAWA, Ontario – (COMMERCIAL THREAD) – Avivagen Inc. (TSXV: VIV, OTCQB: VIVXF) (“Avivagen”), a life sciences company focused on the development and commercialization of livestock, companion animal and human products that improve safe food intake and support immune function, supporting general health and performance, announced its unaudited financial results for the second quarter of 2021.
“This quarter has been spent laying the groundwork for the second half of 2021 and beyond,” says Kym Anthony, CEO of Avivagen Inc. “We have already seen the efforts of the first half of this fiscal year – set the orders. We believe our strategic approach to expanding our efforts across the Americas positions Avivagen to deliver strong results both for the rest of the year and for the future. ”
Milestones reached in the second quarter of 2021 include:
Obtaining its biggest recurring order to date for OxC-betaMT Breeding, an 18 month contract at four tonnes per month for use in Mexico. The total order of 64.5 tonnes is the largest to date in terms of contract size and length, and a direct result of the agreement with Meyenberg International Group finalized in the second quarter.
Selection of Meyenberg International Group to lead expansion efforts in Central and South America.
In collaboration with Mimi’s Rock Corp., announced the launch of Dr. Tobias Beta Blend on Amazon.com – the first product from Vivagen designed for human consumption.
Announced the closing of its $ 7.5 million oversubscribed bought deal unit offering.
Announcing the release of its New Zealand OxC-betaMT Cattle dairy test for use in subclinical mastitis in the New Zealand Veterinary Journal, and his upcoming publication of research highlighting the benefits of OxC-betaMT Livestock for broiler poultry in Poultry science.
As of the end of the quarter, Avivagen also announced that it has:
Acquisition of a new client in western Mexico.
Ended its previous exclusive sales and distribution agreement in the United States and began discussions with potential partners to step up sales efforts in the lucrative region.
Recorded its first order from Brazil, received May 28, 2021.
Obtaining a first order from a major producer of pigs and poultry in Thailand after numerous trials.
Second Quarter Financial Results, April 30, 2021
The Company’s unaudited financial statements for the second quarter ended April 30, 2021 and the accompanying MD&A have been filed in the Electronic Document Search and Analysis System and are available on its website (www.sedar.com). The financial information for the second quarter ended April 30, 2021 should be read in conjunction with the Company’s unaudited financial statements as well as its MD&A for the second quarter ended April 30, 2021.
The Company reported revenues of $ 159,614 ($ 29,625 for the quarter ending April 30, 2020) and an aggregate loss of ($ 2,197,649) for the quarter ending April 30, 2021. This compares to a overall loss for the quarter ending April 30, 2020 of $ (1,393,497).
As shown in the statements of cash flows, the aggregate loss for the quarter of April 30, 2021 of $ (2,197,649) consists of $ 1,181,373 of non-cash items such as expenses related to payments based on shares, amortization and adjustments to the Company’s ACOA loans. The Company reported $ 724,505 of increased interest and adjustments related to ACOA loans due to an increase in management’s estimate of future revenues. As noted, this ACOA adjustment is a non-cash adjustment for the quarter ending April 30, 2021.
ACOA loans are interest free and repayments are calculated at 10% of future income and are due June 30e of each year. The carrying amount has been discounted at a rate of 35% based on the timing and expected amounts of future loan repayments. Therefore, the carrying amount of ACOA loans requires regular measurement and adjustment based on management’s estimate of future income, with any adjustment being recognized as finance expense in the Statement of Comprehensive Income with an equal increase. of ACOA’s debt liabilities in the position statement. In light of recent press releases announcing future and recurring orders for customers in Mexico, the Philippines and Thailand, management has increased its estimate of future revenues and therefore adjusted the book value of ACOA loans in result.
The Company’s working capital increased by $ 949,353 as management invested in additional volumes of inventory to support future sales and increased prepaid expenses and trade accounts receivable.
As at April 30, 2021, the Company reported total assets of $ 5,985,104 (current assets of $ 5,675,117), total liabilities of $ 7,163,307 and shareholder deficit of ($ 1,178,203).
Significant funding inflows during the quarter ending April 30, 2021 consisted of an offer of 15,000,000 units of the Company at $ 0.50 per unit for total gross proceeds of $ 7,500,000. Offer closed on February 16e, 2021.
Each unit consisted of one common share in the capital of the Company (each a “common share”) and one-half common share purchase warrant (each full warrant, a “warrant”). Each warrant may be exercised to acquire one common share until February 16, 2024 at an exercise price of $ 0.75 per share. The net proceeds of the Offering have been and will be used to finance research and development expenses, selling and marketing expenses, product registration, interest expense, working capital and general corporate needs. business.
Avivagen is a life sciences company focused on the development and commercialization of products for livestock, companion animals and humans that, by safely supporting immune function, promote general health and performance. It is a public company listed on the TSX Venture Exchange under the symbol VIV and headquartered in Ottawa, Canada, at the partnership facilities of the National Research Council of Canada. For more information visit www.avivagen.com. The content of the website is expressly not incorporated by reference in this press release.
About OxC-beta ™ technology and OxC-beta ™ breeding
Avivagen’s OxC-beta ™ technology is derived from Avivagen’s findings on β-carotene and other carotenoids, compounds that give certain fruits and vegetables their vivid colors. By supporting immune function, the technology provides a non-antibiotic way to promote health and growth. OxC-beta ™ Livestock is a proprietary product that has proven to be an effective and economical alternative to antibiotics commonly added to livestock feed. The product is currently available for sale in the United States, Philippines, Mexico, Taiwan, New Zealand, Thailand, Brazil, Australia and Malaysia.
Avivagen’s OxC-beta ™ livestock product is safe, effective and could fulfill the global mandate to eliminate all antibiotics in the diet as growth promoters. Numerous international poultry and pig trials using OxC-beta ™ Livestock have proven that the product works as well, and sometimes in some ways better than antibiotics in feed.
This press release includes certain forward-looking statements based on management’s current expectations. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the company operates. All statements contained in this document that are not statements of historical fact can be considered as forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “Could”, “estimate”, “expect”, “if”, “intention”, “objective”, “hope”, “probable”, “may”, “plan”, ” possibly ”,“ possibly ”,“ continue ”,“ appear ”,“ should ”,“ if ”,“ will ”,“ would ”and similar expressions. Statements in this press release regarding Avivagen’s expectations for future growth and results, expected continuation of shipments to customers based on recurring orders, future U.S. sales plans, usage forecast of the proceeds from the financing discussed above, Avivagen’s expectations regarding growth in demand for Avivagen’s products, the potential for OxC-beta ™ Livestock to replace antibiotics in feed as well as meet a critical need for health support in certain animal husbandry applications where antibiotics are excluded and the size of the market opportunities are all forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties which could cause actual results or events to differ materially from current expectations. For example, initial orders may not result in further orders for products from Avivagen, despite receipt of the purchase order, the timing, delivery or fulfillment of product orders could be delayed for a number of reasons, including some are beyond Avivagen’s control, which could result if anticipated revenues from such sales are delayed or, in the most serious cases eliminated, actions taken by Avivagen customers and factors affecting business and financial viability of Avivagen customers may negatively impact future sales and revenue expectations, customer plans may change for many reasons, demand for Avivagen products may not continue to grow and may decline, Avivagen products may not be accepted in the market or approved by regulatory authorities in certain circumstances. new jurisdictions or for new applications and may not be widely accepted as a substitute for antibiotics in feeds, in each case due to many factors, many of which are beyond the control of Avivagen. Readers are referred to the risk factors associated with Avivagen’s business as set out in Avivagen’s most recent MD&A and Financial Condition Analysis available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update any forward-looking statements or to update the reasons why actual results could differ from those reflected in forward-looking statements.
Neither the 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.
Copyright © 2021 Avivagen Inc. OxC-beta ™ is a trademark of Avivagen Inc.