TORONTO, May 30, 2019 /CNW/ - Delivra Corp. (TSXV:
DVA - "Delivra" or the "Company") reported its financial
results for the three months ended March 31,
2019. 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 Q1 2019:
- Recorded sales of $1,080,882,
representing 9% sales growth over the comparative quarter;
- Increased gross margin percentage to 77% for the quarter, a
result of recognizing product formulation revenues, which yield
larger gross margins; 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. Completion of the Arrangement remains subject to
various closing conditions, including a final order by the Ontario
Superior Court of Justice (Commercial List) (the "Court")
which was sought on May 29, 2019, as
well as the satisfaction or waiver of all other conditions
precedent for completion of the Arrangement, including those as set
out in the Arrangement Agreement between the Corporation and
Harvest One dated March 3, 2019 with
respect to the Arrangement.
"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 the combined companies.
We believe that Harvest One is the ideal partner to take Delivra to
the next level."
Delivra's unaudited condensed interim consolidated financial
statements and management's discussion & analysis ("MD&A"),
for the three months ended March 31,
2019, 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.comhttp://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