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.
Further information on Delivra can be found at
www.delivracorp.com and www.livrelief.com.
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