VICTORIA, BC, Sept. 29, 2020
/CNW/ - IMMUNOPRECISE ANTIBODIES LTD. (the "Company" or "IPA")
(TSXV: IPA) (OTCQB: IPATF) today announced financial results for
its fiscal year 2021 first quarter ended July 31, 2020.
Q1 Fiscal 2021 Financial Highlights:
- Revenue increases by $1.1
million, or 39%, to $3.8
million versus $2.7 million
for Q1 2020
- Gross profit increases by $1.1
million to 64% of revenue vs 51% of revenue for the prior
year period.
- Adjusted EBITDA increases to $932,000 compared to a loss of $481, 000 for the same period last year.
- Cash on hand is $6.0 million as
of July 31, 2020.
- Warrants exercised after quarter-end through September 28, 2020 provide $9.7 million in cash in exchange for 7.8 million
shares of stock, all warrants expiring September 24, 2020 were exercised.
Financial Results
Revenue. The Company achieved revenues of
$3,764,977 during the three months
ended July 31, 2020, compared to
revenues of $2,716,099 during the
same quarter in 2019. This represents a 39% increase in revenue for
the period. The increasing revenue trend is due to increases in
both volume and financial value of client contracts as a result of
continued focus on expanding the breadth and depth of services
offered, new client onboarding including top pharma companies, and
growing its core existing client business.
Gross Margin. During the three months ended
July 31, 2020, the Company achieved a
gross profit of $2,410,326, compared
to $1,376,406 in 2019. This
represents a 64% increase compared to 51% for the same period last
year.
Net Loss. The Company recorded a net loss of $549,318 during the three months ended
July 31, 2020, compared to net loss
of $2,012,198 for the three months
ended July 31, 2019, primarily due to
higher revenue and gross profit as well as an increase in Other
Income as a result of research grant awards and government
subsidies.
Non-IFRS Measures. * Adjusted EBITDA for the three
months ended July 31, 2020 was
$932,716 compared to ($481,499) for same period last year. This
significant improvement in Adjusted EBITDA is primarily a result of
the increase in gross profit and research grant awards and
government subsidies.
Warrant Exercises. During the first quarter,
3,305,500 warrants were exercised issuing shares of common stock
for $3,566,474 in cash. Subsequent to
quarter-end, 7,813,000 warrants were exercised issuing shares of
common stock for $9,725,000 in cash.
All warrants expiring September 24,
2020 were exercised.
Dr. Jennifer Bath, CEO and
President of ImmunoPrecise, commented, "This has been a
transformative quarter, both financially and operationally. We
achieved solid revenues, as we added new clients and expanded
services with our existing clients. As a result, we achieved
positive adjusted EBITDA and cash flow from operations. At the same
time, we have further strengthened our balance sheet and enhanced
our capital structure through the exercise of warrants, providing
the opportunity to generate more intellectual property assets."
"Operationally, we continue to make tremendous progress,
advancing programs both with our clients as well as our proprietary
COVID-19 programs. We recently announced an important research
collaboration with Zymeworks Inc., providing us access to their
Zymeworks' Azymetric™ and EFECT™ platforms for the further
development of multiple antibody candidates to fight
COVID-19. Most recently, we announced the initiation of
pre-clinical vaccine trials against SARS-CoV-2 together with
LiteVax BV (Oss, the Netherlands).
Overall, we are rapidly advancing our Polytope™ Therapy and Vaccine
programs, which we believe represent the most comprehensive and
diverse antibody cocktail approach globally."
"Given our financial and operational progress, we felt this was
the appropriate time to commence our NASDAQ listing process. As the
world's pre-eminent exchange for biotech and pharma companies, we
believe a NASDAQ listing will provide us greater exposure within
the investment community as we execute on key upcoming
milestones."
IPA periodically provides information for investors on its
corporate website, ImmunoPrecise.com. This includes press
releases and other information on financial performance, reports
filed or furnished with the TSX, information on corporate
governance and details related to its annual meeting of
shareholders. Reports filed or furnished with the TSX can be found
at sedar.com.
About ImmunoPrecise Antibodies Ltd.
ImmunoPrecise is a leading, global, technology platform company
with full service, end-to-end solutions that empower pharmaceutical
companies across the globe to discover, develop, optimize, engineer
and manufacture treatments against any disease. The Company's
experience, cutting-edge technologies and focus on intense
scientific rigor enables unparalleled support of its partners in
their quest to bring innovative treatments to the clinic. With
ImmunoPrecise's industry-leading technologies, fully integrated
project management platform, and one-stop service offerings, the
Company dramatically reduces the time required for, and the
inherent risk associated with, conventional multi-vendor product
development. For further information, visit
www.immunoprecise.com or contact
solutions@immunoprecise.com.
Forward Looking Information
This news
release contains statements that, to the extent they are not
recitations of historical fact, may constitute "forward-looking
statements" within the meaning of applicable Canadian securities
laws. The Company uses words such as "may", "would", "could",
"will", "likely", "expect", "believe", "intend" and similar
expressions to identify forward-looking statements. Any such
forward-looking statements are based on assumptions and analyses
made by ImmunoPrecise in light of its experience and its perception
of historical trends, current conditions and expected future
developments. However, whether actual results and developments will
conform to ImmunoPrecise's expectations and predictions is subject
to any number of risks, assumptions and uncertainties. Many factors
could cause ImmunoPrecise's actual results to differ materially
from those expressed or implied by the forward-looking statements
contained in this news release. Such factors include, among other
things, actual revenues and earnings for IPA being lower than
anticipated, and those risks and uncertainties described in
ImmunoPrecise's annual management discussion and analysis for the
fiscal period ended January 31, 2020
which can be accessed at www.sedar.com. The
"forward-looking statements" contained herein speak only as of the
date of this press release and, unless required by applicable law,
ImmunoPrecise undertakes no obligation to publicly update or revise
such information, whether as a result of new information, future
events or otherwise.
*Non-IFRS Financial Measure
Readers are cautioned that "Adjusted EBITDA" is a measure not
recognized under IFRS. Adjusted EBITDA is defined as earnings
before interest income, taxes, depreciation and amortization,
share-based compensation, restructuring costs, impairment charges
and other non-recurring gains or losses. Management believes
Adjusted EBITDA is a useful measure that facilitates
period-to-period operating comparisons. Readers are cautioned that
"Adjusted EBITDA" is not an alternative to measures determined in
accordance with IFRS and should not, on its own, be construed as
indicator of performance, cash flow or profitability.
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.
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SOURCE ImmunoPrecise Antibodies Ltd.