Avivagen Inc. Announces Results for Fiscal Year Ending October 31, 2021
Avivagen Inc. Announces Results for Fiscal Year Ending October 31, 2021
OTTAWA, Ontario, January 19, 2022--(BUSINESS WIRE)--Avivagen Inc. (TSXV:VIV) ("Avivagen" or the "Company") today reported its audited financial results for the year ended October 31, 2021. Unless otherwise noted, all figures are in Canadian currency.
The Corporation’s Audited Financial Statements for the year ended October 31, 2021, and the accompanying Management’s Discussion and Analysis have been filed on the System for Electronic Document Analysis and Retrieval and are available via its website (www.sedar.com). The financial information for the year ended October 31, 2021, should be read in conjunction with the Corporation’s Financial Statements as well as its Management’s Discussion and Analysis for the year ended October 31, 2021.
"2021 has been an important year for Avivagen as we continued to establish ourselves and our OxC-beta™ product in a growing number of markets worldwide, with OxC-beta™ now approved for sale in seven countries. The AB Vista-distribution agreement (US, Brazil and Thailand), increased product use by Philippines distributor UNAHCO, first commercial use of OxC-beta in sows (new product application), and becoming the cornerstone ingredient in a top selling premium brand of pet food in Taiwan highlight the progress achieved in 2021. Unfortunately, the ongoing Covid-19 pandemic with accompanying disruptions in the global supply chain and continued outbreaks of African Swine Fever (ASF) in Southeast Asia have led to an extremely challenging economic environment for all businesses, including many of Avivagen’s current customers. As a direct result of this, previously announced contracts with Melder and Transformadora have been pushed back. During this same period, potential new customers have completed numerous successful animal trials, with the expectation of new additional sales with our Mexican customers to follow," says Kym Anthony, Chief Executive Officer.
Throughout this challenging period, Avivagen has continued to set a foundation for strong growth in 2022 and beyond. Initiatives include investment in a major toxicology study which is near completion, investment in additional inventory and further progress on obtaining our non-objection letter from the U.S. Food and Drug Administration ("FDA"), activities which we expect to contribute to future growth. Looking ahead, the Company expects to make further inroads in existing and new markets in Asia and the Americas in the coming year, progressing our relationships with customers in a number of key markets and continuing to grow many of the early-stage customer and partner relationships we successfully established in 2021 which are substantially additive as our customers have displayed growing and recurring revenue models.
Previously announced agreements with AB Vista and UNAHCO to supply OxC-beta™ to feed producers in the United States, Brazil, Thailand and the Philippines are expected to result in recognized revenue beginning in the early part of 2022. The Company is also expecting to receive regulatory approval for the use of OxC-beta™ in a number of large and important Asian feed production markets in the coming year.
The Company reported revenues of $1,295,991 ($1,177,857 in the year ending October 31, 2020) and a comprehensive loss of $(6,394,159) for the year ended October 31, 2021. This compares to a comprehensive loss in the year ending October 31, 2020 of $(4,751,287). As at October 31, 2021, the Company reported total assets of $3,477,774 (current assets of $3,216,022), total liabilities of $7,430,439, and shareholders’ deficit of ($3,952,665).
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that, by safely supporting immune function, promote general health and performance. It is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.
About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about ?-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. 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 remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "aim", "anticipate", "appear", "believe", "consider", "could", "estimate", "expect", "if", "intend", "goal", "hope", "likely", "may", "plan", "possibly", "potentially", "pursue", "seem", "should", "whether", "will", "would" and similar expressions. Statements set out in this news release relating to Avivagen’s expectations as to future growth and results, expectation as to the completion of toxicology studies, the anticipated continuation of shipments to customers based on recurring orders, timing of future shipments and revenue recognition, expectations as to additional regulatory approvals, and the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as well as fill a critical need for health support in certain livestock applications where antibiotics are precluded. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, sales and use of Avivagen’s products may not grow in the manner anticipated, toxicology studies may not be completed in the time frames expected, initial orders may not result in recurring or repeat orders for Avivagen’s products, despite receipt of the purchase order timing, delivery or fulfilment of orders of product could be delayed for a number of reasons, some of which are outside of Avivagen’s control, which could result in anticipated revenues from such sales being delayed or in the most serious cases eliminated, actions taken by Avivagen’ s customers and factors affecting the business and financial viability of Avivagen’ s customers can have a negative impact on the expectation of future sales and revenues, customer plans may change due to many reasons, demand for Avivagen’s products may not continue to grow and could decline, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics in livestock feeds, in each case due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
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.
Copyright © 2022 Avivagen Inc. OxC-beta™ is a trademark of Avivagen Inc.
Director of Investor Relations
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6 Phone: 416-540-0733
Chief Executive Officer
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6 Head Office Phone: 613-949-8164