Nanalysis Scientific Corp. (f. Canvass Ventures Ltd. ) Corporate Update, Q2 2019 Sales and Board Change
VANCOUVER, July 17, 2019 /CNW/ - Nanalysis Scientific Corp. (formerly Canvass Ventures Ltd.) ") (TSX Venture Exchange NSCI) (the "Exchange") is pleased to provide an inaugural post listing update and first official press release as a public company.
Completion of QT PP and Public Listing
On June 4, 2019 Nanalysis Scientific Corp. (Nanalysis or the Company) became a public company by completing an amalgamation with Canvass Ventures Ltd., a CPC, which constituted its Qualifying Transaction and joined the Tier 1 of the Exchange as a Technology/Industrial issuer. Nanalysis is the global leader in portable "MRI-for-industry" applications, with its proprietary magnetic resonance analyzers sold to pharmaceutical customers and into other market segments.
Concurrently with the closing of the Qualifying Transaction, the Company raised $6.5 million in two private placements at $0.60 per share (see capitalization table below), with such shares subject to a four-month hold. This financing included a $1.5 million investment from the Chairman of the Natural Factors Group, a leading nutraceuticals manufacturer, which intends to promote Nanalysis' products throughout its extensive global network. The Company's shares began trading on the TSXV on June 13, 2019.
Financial and Sales Update
Nanalysis has a December 31st year end. With the recently completed second quarter, management anticipates releasing June 30, 2019 interim consolidated financial statements in late August 2019.
As of July 2019, Nanalysis completed its most successful Q2 in the company's history, shipping 42 benchtop NMR instruments representing approximately $2.6 million in sales for the three-month period ended June 30th, 2019, compared to $2.1 million in sales for the comparable period in 2018. Shipments included sales into the pharmaceutical industry (example customers are Eurofins, TLC Pharmaceutical Standards Ltd, and Zymergen), government labs (Idaho National labs, US Army, LKA Niedersachsen), companies in the energy and fuels segment (URENCO, Marathon Petroleum), the groundbreaking Cannabis industry (Dosecann), as well as continued increased penetration of universities. Please note that Q2 2019 sales are unaudited and could be subject to potential revision as the Company prepares its full financial statements for release in late August.
New Product Launch & Market Opportunity
Management is excited about a new product launch later this year, based on identified demand from customers in the pharmaceutical, chemical, materials science, and other industries that require more performance and are willing to pay a higher price. In addition, the company continues to establish new collaborations with partners in the nutraceutical, law enforcement, cannabis, marine cargo vessel, and other industries that will continue to expand our short, medium, and long-term sales pipeline. Management believes that the untapped market opportunity is multiple billions of dollars, and is working diligently to scale the business to exploit this opportunity.
Nanalysis has been selling its magnetic resonance analyzers commercially for five years and has sold over 550 instruments for cumulative revenue of over $30 million, most of which has been garnered in the last two years. Management is committed to a balanced approach of striving for top line growth, without entering into long periods of negative earnings, but rather profitability: The company has posted positive Net Income in 2017 and 2018 with gross margins of over 60% (see the Company's Filing Statement on Sedar). Founder & CEO Sean Krakiwsky states: "We are an industrial tech company with exciting upside and revenue growth opportunities balanced with a track record of having the capability to deliver positive Net Income. The foundation of the business is our patented protected products, impressive suite of trade secrets, world-class proprietary manufacturing capabilities, vibrant global marketing and sales organizations, and an innovation pipeline that will fuel growth well into the future of the nascent portable "MRI-for-industry" market opportunity".
Board role changes
At its recent Board of Directors meeting Martin Burian was elected Chairman of the Board, replacing Dr. Mohamed Abousalem who is stepping down as Chair due to other professional commitments. The Company is thankful to Dr. Abousalem for Chairing the Company over the past 5 years, and serving on the Board for 10 years, through its R&D phase and successful commercial launch of its product. Mr. Burian stated "I am thrilled to assume a leadership role at Nanalysis as we move the Company deeper into its evolution as a public company. With strong capitalization, growing sales that are expected to deliver solid financial results, and M&A aspirations in the near and mid-term, I am looking forward to working closely with the Board and CEO Sean Krakiwsky to deliver meaningful shareholder value."
Capitalization & Working Capital
At June 30, 2019, the Company had the following capitalization:
Shares issued and outstanding |
60,922,323 |
Financing Warrants exercisable at $0.75 until June 4, 2020 |
5,773,900 |
Stock options |
4,288,250 |
Fully diluted share capital |
70,984,473 |
As of June 30, 2019, the company has roughly $9 million of working capital, including over $7 million in cash.
Guidance Going Forward
The company is pleased to provide this inaugural press release since listing, and the company will continue to provide press releases with meaningful information for investors. However, the company will not be providing revenue and earnings guidance going forward (until further notice). The company will provide information, including but not limited to quarterly financials, in a timely fashion as it executes its growth strategy, and is committed to quality investor relations initiatives going forward, so as to keep investors fully abreast of Nanalysis' progress.
ON BEHALF OF THE BOARD OF DIRECTORS
"Sean Krakiwsky"
Sean Krakiwsky, CEO & Director
Neither the Exchange nor its Regulations Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution concerning forward-looking statements
This news release may contain forward-looking statements that are based on Nanalysis expectations, estimates and projections regarding its business, and the economic sectors in which Nanalysis operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. For these reasons, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and Nanalysis undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law or applicable stock exchange policy.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
SOURCE Nanalysis Scientific Corp.
Sean Krakiwsky at +1.587.899.0513.
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