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Ceapro Inc. Reports 2023 Second Quarter and Six-Month Financial Results and Provides Corporate Update

- $5.5 million first six-month 2023 sales vs. $11.7 million for the same period in 2022; sales lagging by one quarter due to stocking campaign by one major customer in 2022 and further Marketplace reorganization

- Ended the quarter with $11.3 million in cash allowing funding for planned pipeline and technology developments

- Ongoing strategic corporate discussions progressing and continued planning for uplisting to Nasdaq

EDMONTON, Alberta, Aug. 29, 2023 (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, 2023.

“While sales from the base business are trailing by one quarter for the first half of 2023 as compared to the previous all-time record period last year, we are very encouraged by the significant advancements in new products and technologies development. Further, over the past quarter we remained very active with our activities related to strategic corporate initiatives. Our business remains solid, and we believe we are positioned now for the return of a more consistent re-ordering pattern from one of our major customers. We are also very pleased with the recent signing of an extended supply and distribution agreement reinforcing our relationship with longtime partner Symrise while securing our base business for the upcoming years,” stated Gilles Gagnon, M.Sc., MBA, President and CEO.

Corporate and Operational Highlights

Pipeline Development

The Company’s focus is on avenanthramides, beta glucan from oat and yeast and new chemical complexes/delivery systems.

Clinical Development:

Avenanthramides (AVS)


  • Stability studies are ongoing for the 30mg and 240mg pills formulation manufactured, packaged and labeled by Corealis Inc. GMP Manufacturing Services.

Phase 1-2a Clinical Trial:

  • Recruitment and enrollment of healthy subjects for Phase 1 is planned for mid-November 2023 upon the complete development of a bioassay for the “live” analytical measurement of avenanthramides in blood and urine during the hospital stay of healthy subjects. Testing AVS in urine has never been done before and this newly developed test requires standardized stability data.

Pre-Clinical Development:

Avenanthramides & Oat Beta Glucan

Wound Healing-Tissue Regeneration:

  • Announced positive results from animal studies conducted by the Angiogenesis Foundation. Studies showed statistically significant results characterizing the bioactivity of both Ceapro’s oat-derived bioactive products on wound healing and tissue regeneration. Tissue treated with Avenanthramides (“AV”) and oat beta glucan (“BG”) bioactives at concentration as low as 1% healed to become more like normal skin as compared to untreated scar tissue. These unprecedented results will not only support additional claims for commercially available formulations using Ceapro’s oat-based products but should also trigger interest from medical supply companies.
  • Subsequent to the quarter, announced next steps with new studies with the Angiogenesis Foundation to focus on speed of healing and molecular profiling of tissue regeneration induced by oat-derived bioactive products.

Yeast Beta Glucan (YBG) - Potential Inhalo-Therapeutic

  • Announced encouraging results from research collaboration study with McMaster University evaluating PGX-processed YBG (PGX-YBG) for interstitial lung diseases. Data presented in May 2023 at two major international conferences (American Thoracic Society in Washington and at the Pharmaceutical Science annual symposium in Toronto) demonstrated that PGX-YBG is respirable and able to safely and reliably reprogram macrophages in the lungs in pre-clinical mouse models.
  • Following discussions with experts, while it is desirable to immediately initiate the design of the protocol for a Phase 1 trial, a required next step is to conduct toxicological studies with a contract research organization before presenting a file to Health Authorities for a Phase 1 clinical study to assess PGX-YBG microparticles as a potential much-needed therapeutic option for a broad spectrum of fibrotic lung diseases.

Immune/energy booster:

  • Completed specifications for YBG as a natural health product.
  • Achieved batch to batch consistency at demo level.
  • Ongoing studies for testing and standardization of loading capacity of CoQ10 by YBG which is a requirement for dose selection when assessing safety and efficacy.

Yeast beta glucan is the product that will be used for the PGX scale-up project at pilot scale levels of 50L and 100L vessels.


Malted Technology (Avenanthramides)

  • Successfully achieved the malting procedure for a first batch at small commercial scale level. Obtention of batch-to-batch consistency should allow for the offer of enriched formulations with high concentration of avenanthramides to serve some nutraceutical markets.

Pressurized Gas eXpanded Technology (PGX)

  • Fully reassessed the pilot scale-up project. Instead of doing it sequentially from demo scale 10L to pilot 50L and 100L, the pilot scale-up project is now designed to be conducted in parallel in two different locations. The 50 Liters will be installed and tested in Edmonton while the 100 Liters will be developed and tested within the facility of a European based global leader in design, construction and commissioning of high-pressure supercritical processing plants. This approach should save time and money. The 50L should be installed by year-end and commissioned during the first quarter of 2024 while the 100L should be ready during Q3, 2024. Yeast beta glucan will be used for the pilot testing at all levels. Successful results from these experiments would pave the way for commercialization of YBG as an immune booster and as a basis for the construction of a large commercial scale unit in Canada.


  • Appointed Mr. Michel Regnier as Senior Vice President, Technical Operations. Mr. Regnier is an experienced and respected Operations Executive and Professional Engineer with 20+ years of progressive technical and leadership experience in the medical device, pharmaceutical and aerospace materials manufacturing industries.
  • Continued to assess possible corporate strategies to support the accelerated growth of the Company along with stated objective of uplisting to Nasdaq.

Subsequent to the Quarter

  • Signed an extended supply and distribution agreement reinforcing vote of confidence and relationship with long time partner, Symrise.

Financial Highlights for the Second Quarter and the Six-Month Period Ended June 30, 2022

  • Sales of $1,869,000 for the second quarter of 2023 and $5,364,000 for the first six months of 2023 compared to $5,500,000 and $11,672,000 for the comparative periods in 2022. The decrease in sales revenue for the first 6 months was primarily driven by an overall decrease in sales volume of 61% mainly due to a one-time stocking campaign by one major customer in 2022.
  • Net loss after tax of $1,154,000 for the second quarter of 2023 and $1,539,000 for the first six months of 2023 compared to an after-tax net profit of $1,805,000 and $3,618,000 for the comparative periods in 2022.
  • Cash used in operations of $2,213,000 for the first six months of 2023 vs cash generated from operations of $3,958,000 in 2022.
  • Positive working capital balance of $17,425,000 as of June 30, 2023.
  • Cash on hand of $11,306,000 as of June 30, 2023. ($11,368,000 in 2022)

“Despite a slower start to the year, our business remains solid, and we expect the reordering pattern from one major customer to resume shortly. Given our healthy balance sheet and the re-affirmed vote of confidence from our longtime partner Symrise, we will continue to leverage on our base business to enable the development of new products and technologies like the planned Phase 1-2a clinical trial with avenanthramides, the scale-up of the PGX Technology for the development of YBG as an immune modulator and the commercial scale-up of a malting technology to enable the production and selling of enriched oat flour with high concentration of avenanthramides to serve important nutraceutical market segments. The Company expects to complete these projects using cash on hand in 2023 while continuing to assess different, strategic market initiatives to unlock value,” concluded Mr. Gagnon.

Condensed Interim Consolidated Balance Sheets  
 June 30,December 31,
Current Assets  
Cash and cash equivalents11,306,26013,810,998
Trade receivables1,563,4042,820,300
Other receivables77,13264,808
Inventories (note 4)5,144,6363,757,040
Prepaid expenses and deposits143,961135,133
Total Current Assets18,235,39320,588,279
Non-Current Assets  
   Investment tax credits receivable854,895854,895
Licences (note 5)11,10612,588
Property and equipment (note 6)15,304,08916,201,755
Total Non-Current Assets16,247,04417,146,192
TOTAL ASSETS34,482,43737,734,471
Current Liabilities  
Accounts payable and accrued liabilities424,2831,730,377
Current portion of lease liabilities (note 7)386,316370,460
Total Current Liabilities810,5992,100,837
Non-Current Liabilities  
Long-term lease liabilities (note 7)2,052,9722,248,577
Deferred tax liabilities674,7721,095,968
Total Non-Current Liabilities2,727,7443,344,545
TOTAL LIABILITIES3,538,3435,445,382
Share capital (note 8 (b))16,697,71216,694,625
Contributed surplus (note 8 (e))4,905,8084,714,404
Retained earnings9,340,57410,880,060
Total Equity30,944,09432,289,089

Condensed Interim Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income
 Three Months Ended June 30, Six Months Ended June 30, 
 2023 2022 2023 2022 
  Restated  Restated 
  (note 3)  (note 3) 
 $$ $ $ 
Revenue (note 14)1,868,758 5,500,399 5,363,569 11,672,023 
Cost of goods sold798,488 1,674,091 2,687,461 4,131,193 
Gross margin1,070,270 3,826,308 2,676,108 7,540,830 
Research and product development926,775 543,924 1,500,462 899,205 
General and administration1,625,066 1,069,275 3,146,511 1,838,320 
Sales and marketing13,458 9,248 21,637 14,547 
Finance costs (note 10)32,644 32,175 121,444 120,210 
(Loss) income from operations(1,527,673)2,171,686 (2,113,946)4,668,548 
Other income (note 11)(57,389)(191,841)(153,264)(68,803)
(Loss) income before tax(1,470,284)2,363,527 (1,960,682)4,737,351 
Deferred tax (benefit) expense(315,848)558,461 (421,196)1,119,356 
Total net (loss) income and comprehensive (loss) income for the period(1,154,436)1,805,066 (1,539,486)3,617,995 
Net (loss) income per common share (note 17):    
Basic(0.01)0.02 (0.02)0.05 
Diluted(0.01)0.02 (0.02)0.05 
Weighted average number of common shares outstanding (note 17):    
Basic78,253,177 77,734,865 78,252,514 77,710,854 
Diluted78,253,177 78,474,139 78,252,514 78,405,883 

Condensed Interim Consolidated Statements of Cash Flows  
 2023 2022 
  (note 3) 
Six Months Ended June 30,$ $ 
Net (loss) income for the period(1,539,486)3,617,995 
Adjustments for items not involving cash  
Finance costs66,444 65,210 
Depreciation and amortization971,183 939,191 
Deferred income tax (benefit) expense(421,196)1,119,356 
Share-based payments192,491 39,924 
Trade receivables1,256,896 (1,267,909)
Other receivables(12,324)(44,873)
Prepaid expenses and deposits35,116 (7,059)
Accounts payable and accrued liabilities relating to operating activities(1,307,917)(20,582)
Net (loss) income for the period adjusted for non-cash and working capital items(2,146,389)4,023,101 
Interest paid(66,444)(65,210)
Purchase of property and equipment(72,035)(239,995)
Deposits relating to the purchase of equipment(43,944)- 
Accounts payable and accrued liabilities relating to investing activities1,823 (47,754)
Stock options exercised2,000 60,160 
Repayment of lease liabilities(179,749)(143,294)
(Decrease) increase in cash and cash equivalents(2,504,738)3,587,008 
Cash and cash equivalents at beginning of the period13,810,998 7,780,989 
Cash and cash equivalents at end of the period11,306,260 11,367,997 

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

For more information contact:

Jenene Thomas
Investor Relations and Corporate Communications Advisor
T (US): +1 (833) 475-8247

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

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