TORONTO, April 11, 2019 /CNW/ - Delivra Corp. (TSXV: DVA - "Delivra" or the "Company") reported its financial results for the three and twelve months ended December 31, 2018. All figures are reported in Canadian dollars ($), unless otherwise indicated. Delivra's financial statements are prepared in accordance with International Financial Reporting Standards.
Highlights for Fiscal 2018:
- Record sales of $5,052,715 representing 12% sales growth over 2017;
- A robust gross margin of 71% for the year, in line with historical percentages;
- Successfully launched two new LivReliefTM products during the year, LivReliefTM Extra Strength Chronic Angry Pain Relief Cream and LivReliefTM Sports & Active Pain Relief Cream;
- Re-branded and re-packaged the LivReliefTM family of products during the year, with new impactful graphics and colours;
- Increased the number of retail locations currently selling LivReliefTM products from 5,200 stores at the beginning of the year to over 6,000 retail locations as of today;
- Developed a revolutionary, proprietary topical cream base therapeutic, DelivraTMN, for molecules of cannabis, cannabis-like and opioids, for a safer more targeted and consistent delivery to patients afflicted with chronic pain and anxiety;
- Positive results received on the ability to treat pain directly with a topical version of AdvilTM (ibuprofen). Testing for effects of joint pain and inflammation, topical Delivra-ibuprofen formulation offers longer-term pain and swelling reduction compared to oral ibuprofen;
- Signed a joint venture agreement with Intervivo Solutions for a ready to market sleep and anti-anxiety topical therapeutic cream for the animal health industry. Our expertise in formulation using our innovative delivery system platform combined with Intervivo's success in demonstrating pharmacokinetic, safety and efficacy data in clinically relevant canine and feline models provides a unique platform for rapid development of transdermal commercial products for the veterinary market;
- Founder and CEO, Dr. Joseph Gabriele, received the Ernst & Young Entrepreneur of the Year 2018 Ontario award in the Health Care category; and
- Announced on March 4, 2019, that Delivra entered into a definitive arrangement agreement with Harvest One Cannabis Inc. ("Harvest One"), pursuant to which Harvest One will acquire all of the issued and outstanding common shares of Delivra. Under the terms of the agreement, shareholders of Delivra will receive 0.595 common shares of Harvest One for each Delivra share. The Transaction is subject to, among other things, the approval of the Ontario Superior Court of Justice and requires the approval of two-thirds of the votes cast by Delivra shareholders at a special meeting expected to be convened by Delivra in May, receipt of required regulatory approvals and other customary conditions of closing. Approval of shareholders of Harvest One is not required. Additional details of the Transaction will be provided to Delivra Shareholders in an information circular expected to be mailed in April. It is currently anticipated that, subject to receipt of all regulatory, court, shareholder and other approvals, the Transaction will be completed in the second quarter of 2019.
"Building on the momentum from 2017, we delivered record revenues this year, driven by our flagship pain products and the successful launch of two new LivRelief products and our rebranding strategy. With increased sales, strong margins, and a robust consumer and pharmaceutical portfolio, Delivra has built a platform to grow both our consumer and pharmaceutical businesses," said Dr. Joseph Gabriele, CEO of Delivra. "The transaction with Harvest One is an exciting and important step for our shareholders and is the result of an extensive strategic review process. Harvest One is a global leader in the cannabis space, focusing on innovative lifestyle and wellness products. Combined with our proprietary transdermal delivery system platform and extensive research, development and commercialization capabilities, the combined company is extremely well-positioned to take advantage of the growing market for topicals, sprays, beverages, and other cannabis/CBD-infused products. In addition, Harvest One's global reach can provide greater distribution capabilities for our existing product portfolio. This is a value maximizing transaction that provides our shareholders with a premium and an exciting opportunity to participate in the upside of Harvest One. We believe that Harvest One is the ideal partner to take Delivra to the next level."
Delivra's consolidated financial statements and management's discussion & analysis ("MD&A"), for the three and twelve months ended December 31, 2018, are available via Delivra's website at www.delivracorp.com and will be available on SEDAR at www.sedar.com.
ABOUT DELIVRA CORP.
Delivra Corp. is a specialty biotechnology company having a proprietary transdermal delivery system platform that can shuttle pharmaceutical and natural molecules through the skin, in a targeted manner. Delivra manufactures and sells a growing line of natural topical creams with the proprietary transdermal delivery system platform under the LivReliefTM brand, for conditions such as joint and muscle pain, nerve pain, varicose veins, wound healing, and sports performance. LivReliefTM products are available in over 6,000 retail locations, including pharmacies, grocery chains, and independent health food stores across Canada, including, but not limited to, Shoppers Drug Mart, Walmart, Loblaw, Rexall, Pharmasave, London Drugs, and on-line at www.livrelief.com. In parallel with its consumer products business, Delivra also has a mandate to license its patent-pending, proprietary transdermal delivery technology platform to pharmaceutical companies globally, for the repurposing of pharmaceutical molecules transdermally to treat a broad range of conditions, along with licensing its over-the-counter products globally. Delivra is headquartered in Hamilton, Ontario and has a research and development laboratory in Charlottetown, PEI.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute "forward-looking statements", which are not comprised of historical facts. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends", "expects", "estimates", "may", "could", "would", "will", or "plan", and similar expressions. Specifically, forward-looking statements in this news release include, without limitation, statements regarding: the Company's revenues and financial performance; the Company's drug research and development plans; the timing of operations; and estimates of market conditions. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events, performance, or achievements of Delivra to differ materially from those anticipated or implied in such forward-looking statements. The Company believes that the expectations reflected in these forward-looking statements are reasonable, but there can be no assurance that actual results will meet management's expectations. In formulating the forward-looking statements contained herein, management has assumed that business and economic conditions affecting Delivra will continue substantially in the ordinary course and will be favourable to Delivra; that the Company will continue to complete orders with existing customers and control product pricing and expenses that clinical testing results will justify commercialization of the Company's drug candidates; that Delivra will be able to obtain all requisite regulatory approvals to commercialize its drug candidates, that such approvals will be received on a timely basis, and that Delivra will be able to find suitable partners for development and commercialization of its products and intellectual property on favourable terms. Although these assumptions were considered reasonable by management at the time of preparation, they may prove to be incorrect. Factors that may cause actual results to differ materially from those anticipated by these forward-looking statements include: the ability of the Company to maintain existing product sales with current customers at existing product pricing and expenses; uncertainties associated with obtaining regulatory approval to perform clinical trials and market products; the need to establish additional corporate collaborations, distribution or licensing arrangements; the ability of the Company to generate sales and profits; the Company's ability to raise additional capital if and when necessary; intellectual property disputes; increased competition from pharmaceutical and biotechnology companies; changes in equity markets, inflation, and changes in exchange rates; and other factors as described in detail in Delivra's public filings, all of which may be viewed on SEDAR (www.sedar.com). Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement. Except as required by law, Delivra disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
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.
SOURCE Delivra Corp
For further information: Dr. Joseph Gabriele, Chief Executive Officer, email@example.com, 905-561-5014