TSX VENTURE EXCHANGE: AVI
QUEBEC CITY, Aug. 28 /CNW Telbec/ - 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
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
- An agreement has been executed with Pelpharma Handels GmbH for the
distribution of Dermylex(R) 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(R) for the treatment of
Advitech has initiated an innovative wound healing research program to
develop new applications for both its XP-828L and IM technological platforms.
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
For further information:
For further information: Renaud Beauchesne, MBA, Executive Chairman,
Advitech Inc., (418) 686-7498, ext. 228, firstname.lastname@example.org; Serge Comeau,
Investor's relations, Advitech Inc., (514) 862-4160, email@example.com