Press releases
ADVITECH REPORTS SECOND QUARTER 2009 FINANCIAL RESULTS AND HIGHLIGHTS
28 August 2009
TSX VENTURE EXCHANGE: AVI For immediate release
QUEBEC CITY, QUEBEC - August 28, 2009 - Advitech Inc. ("Advitech" or the "Corporation") (TSX Venture Exchange: AVI) today announces the financial results and highlights for the second quarter ended June 30, 2009.
FINANCIAL RESULTS AND CASH FLOWS
Three-month period ended June 30, 2009
- Revenues amounted to $128,910 for the second quarter ended June 30, 2009, compared to $181,478 for the same quarter in 2008, a decrease of $52,568 or 29%.
- Net loss amounted to $387,790 for the second quarter ended June 30, 2009, compared to $534,520 for the quarter ended June 30, 2008, a decrease of $146,730 or 27%.
Six-month period ended June 30, 2009
- For the six-month period ended June 30, 2009, revenues amounted to $315,289, compared to $258,776 for the six-month period ended June 30, 2008, an increase of $56,513 or 22%.
- For the six-month period ended June 30, 2009, net loss amounted to $743,637, compared to $977,440 for the six-month period ended June 30, 2008, a decrease of $233,803 or 24%.
As at June 30, 2009, the Corporation had a cash position of $307,552 and a working capital of $626,833.
"A significant part of the revenues recorded in the first semester of 2009 was made in the U.S. We have communicated several times that the U.S. sales decrease had slowed the revenue growth for 2008 and that we had an objective of growth in this market in 2009. Therefore we are glad of the sales' increase for the first half of 2009 for the American territory, the main market for our products" commented Renaud Beauchesne, Executive Chairman at Advitech.
Mr. Beauchesne added "the net loss decrease for the first half of 2009 is due to lower expenses in the Corporation's operations, in particular reduced financial expenses and the departure of three executives in 2008, two of which were replaced internally".
Discussions are underway with European and North-American partners for the distribution of the Corporation's products. Some of these discussions could materialize before the end of the current year. As the previous years, the Corporation believes that the 2009 revenues will mainly be concentrated in the last quarter.
"Concurrently with Advitech's organic development, we have continued to work on our strategic plan adopted at the end of 2008 which includes external growth by business combination. Companies have been met and discussions are still underway with a couple of them" concluded Mr. Beauchesne.
SECOND QUARTER 2009 HIGHLIGHTS
- Advitech accepted terms and conditions for a refundable contribution from Canada Economic Development under the Business and Regional Growth program. This $200,000 contribution will finance 50% of a project related to the commercialization of the Corporation's products on international markets during the next year. This contribution is free of interest and allows a 24-month moratorium on the capital repayment following the end of the project.
- Advitech has accepted the terms of a $218,000 contribution from National Research Council Canada under the Industrial Research Assistance Program (NRC-IRAP). This non-refundable contribution will support the Corporation's wound healing program from June 2009 to June 2010.
- An agreement has been executed with Pelpharma Handels GmbH for the distribution of Dermylex® in Austria.
- Advitech announced new in vivo data from its R&D wound healing program confirming once again the potential of the IM technology platform for wound healing applications. These new data have been presented in June 2009 at Gordon Research Conference on Tissue Repair and Regeneration at Colby-Sawyer College, New London, NH, by Dr Charles Doillon, M.D., Ph.D., Researcher at Centre de Recherche du Centre Hospitalier de l'Université Laval, who is leading Advitech's wound healing program.
- 98.4% of the issued and outstanding debentures of Advitech, together with accrued interest thereon, which represented an aggregate amount of $2,091,710, were converted into common shares at a deemed price of $0.02 per share, for a total of 104,585,485 common shares. This conversion represents for the Corporation annual savings of about $240,000 in interest expenses.
ABOUT ADVITECH INC. www.advitech.com:
Advitech is a health sciences and technology company with a mission to discover and commercialize proprietary and evidence-based natural health products. Effective and safe, these products play a role in the prevention of immune-mediated inflammatory disorders, such as psoriasis and inflammatory bowel disease. Advitech produces Dermylex® for the treatment of mild-to-moderate psoriasis.
Advitech has initiated an innovative wound healing research program to develop new applications for both its XP-828L and IM technological platforms.
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This press release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Advitech Inc.
Renaud Beauchesne, MBA | Serge Comeau |
Executive Chairman | Investor's relations |
418-686-7498, ext. 228 | 514-862-4160 |