CALGARY, Aug. 28, 2019 /CNW/ - Nanalysis Scientific
Corp. (the "Company" or "Nanalysis", TSX-V:NSCI),
a global leader in magnetic resonance for industrial applications,
announced today its second quarter (Q2) financial results for the
period ended June 30, 2019.
Nanalysis CEO Sean Krakiwsky
states: "We are pleased to report that our year-over-year revenue
growth continues. For the six-month period ending June 30, 2019 revenue was $4,599,533, 21% higher than the same period in
2018. For the three-month period, revenue was $2,534,830 compared to $2,178,722 for the same period 2018. Our gross
margins continue to increase steadily and are now at 67% for the
first half of 2019 compared to 61% in the first half of 2018.
Mr. Krakiwsky continued, "After closing the RTO of Canvass
Ventures Ltd. and the concurrent financing, we are now focused
squarely on building our business. Our strong balance sheet,
including over $9 million in working
capital, allows us to do that. We are excited about our
advantageous competitive position in the burgeoning compact
magnetic resonance space and we expect continued revenue growth for
years to come. Although our priority is top-line growth, we also
recognize the importance to our shareholders of maintaining a
strong balance sheet and managing cash prudently. Our strategy is
to grow the business without the need to raise more money. In this
context the Company has shown a unique capability, for a growth
technology company at this stage, to post positive Net Income in
2017 and 2018. In the first half of 2019 the Company posted
Operating Income of $149,802,
excluding the one-time item of the RTO transaction costs and
finance expenses. (Net and Comprehensive Loss was $1,379,270).
Financial Highlights – Second Quarter to June 30, 2019
- Six-month 2019 revenue of $4,599,533 versus $3,997,498 in 2018
- Q2 2019 revenue of $2,534,830
versus $2,178,722 for Q2 2018
- Six-month 2019 gross margins of 67% versus 61% in 2018
- Q2 2019 gross margins of 70% versus 66% for Q2 2018
- Six-month 2019 Operating Income of $149,802
- June 30, 2019 cash balance of
$7,438,748
- June 30, 2019 working capital of
$9,926,091
Q2 2019 Operational Highlights
- Closed RTO of Canvass Ventures Ltd. and raised $6.5 million in private placements
- Established collaboration agreements with several new
organizations to proliferate the use of magnetic resonance for
industrial applications
- Notable new customers in pharmaceutical, chemical, oil &
gas, law enforcement, and nutraceutical industries
Please see the Company's full financials posted on
Sedar.
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00042572
Board Resignation
At its recent Board of Directors meeting the Company accepted
the resignation from the Board of Directors of Dr. Mohamed Abousalem who is stepping down due to
other professional commitments, after 10 years of service as a
Director of Nanalysis. The Company is thankful to Dr. Abousalem for
this long service. Dr. Abousalem will remain a general advisor to
the Company.
Stock Option Grant
On August 27, 2019 the Company
granted 150,000 stock options with a strike price of $0.60 for 5 years to its manager of investor
relations.
About Nanalysis Scientific Corp. (TSX-V:NSCI,
FRA:1N1)
Nanalysis is listed on the TSX Venture Exchange in Canada with ticker symbol of 'NSCI'. The
Company develops and manufactures portable Nuclear Magnetic
Resonance (NMR) spectrometers or analyzers for laboratory and
industrial instrumentation markets. The NMReady-60™ was the first
fully featured portable NMR spectrometer in a single compact
enclosure requiring no liquid helium or any other cryogens, and the
Company has followed-up that initial offering with new products and
continues to have a strong innovation pipeline. On August 26, the Company announced a new 100 MHz
device that will ship to advance order customers in Q1 2020.
Nanalysis devices are used by chemical professionals in many
industries (oil and gas, chemical, mining, pharma, biotech, flavor
and fragrances, agrochemicals, etc.) as well as numerous government
and university labs around the world. The Company continues to
exploit new global market opportunities with partners and
independently.
Notice regarding Forward Looking Statements and Legal
Disclaimer
This news release contains certain "forward-looking statements"
within the meaning of such statements under applicable securities
law. Forward-looking statements are frequently characterized by
words such as "anticipates", "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed", "positioned" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. These statements are only predictions. Various
assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout
this news release. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
The Corporation is under no obligation, and expressly disclaims any
intention or obligation, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
The TSX Venture Exchange or other regulatory authority has not
reviewed, approved or disapproved the contents of this press
release. We seek safe harbor.
SOURCE Nanalysis Scientific Corp.