CALGARY,
AB AND MOUNTAIN VIEW,
CA, Nov. 3, 2022 /PRNewswire/ - Willow
Biosciences Inc. ("Willow" or the "Company") (TSX:
WLLW) (OTCQB: CANSF), a leading biotechnology company focused
on revolutionizing industrial manufacturing of pure, consistent and
sustainable functional ingredients, has released its financial and
operating results for the three and nine months ended September 30, 2022, reporting significant
progress to its operational platform, leadership and strong
liquidity. Additionally, Willow has announced today that its Board
of Directors has appointed Dr. Peter Seufer-Wasserthal as its
President and CEO, effective November 3,
2022.
Dr. Seufer-Wasserthal has served as interim President and CEO
since July 2022 and brings extensive
experience in biotech, pharma, nutrition, and consumer care to the
Company and has already advanced several partnership discussions in
the food and nutrition sectors. He will continue to build and
lead the organization needed to successfully execute on the
Company's mission. Dr. Seufer-Wasserthal will continue to serve as
Chairman of the Board of the Company.
"The third quarter saw us take another step forward in becoming
a leader in precision fermentation", said Dr. Peter
Seufer-Wasserthal. "Our FutureGrown™ platform technology has
allowed to secure partnerships and identify attractive functional
ingredient opportunities leveraging off our initial work done on
cannabinoids, and we are excited to continue to de-risk our
portfolio to create value for our stakeholders."
Willow's unaudited consolidated interim financial statements and
related management's discussion and analysis for the quarter ended
September 30, 2022 are available on
SEDAR at www.sedar.com.
Highlights for the
Quarter
- On July 18, 2022, Willow
appointed Dr. Peter Seufer-Wasserthal as Interim President and
Chief Executive Officer, effective July 17,
2022, in connection with Trevor
Peters' retirement as President and CEO. Mr. Peters
continues to serve as a Director of the Company.
- On August 31, 2022, Willow
provided an update on Generally Recognized as Safe ("GRAS")
status for its FutureGrown™ cannabigerol ("CBG") product.
The Company successfully completed the Stage 1 toxicological
assessment for oral product applications. Willow anticipates
initiating its Stage 2 pivotal toxicological assessment in Q3 2022
and attaining an independent conclusion of GRAS in the first half
of 2023.
- Subsequent to the quarter, on October
12, 2022, the Company announced that it had completed proof
of concept work on a new functional ingredient Astaxanthin.
Astaxanthin is a red pigment, belonging to a group of chemicals
known as carotenoids. In addition to its pigmentation properties,
it is one of nature's most powerful antioxidants. Development
is currently underway to establish a commercial production process
for pure, consistent & sustainable FutureGrown™
Astaxanthin.
- Willow ended the quarter in a strong financial position, with
approximately $18.7 million in
working capital (see "Specified Financial Measures" below)
and $18.4 million of cash on
hand.
Outlook
Willow is positioned to become a leader in precision
fermentation by capturing key intellectual property around what the
Company anticipates being the most cost-effective methods to
produce highly pure ingredients. The Company's operational
capabilities, along with its strategic partners, span the entire
product development pathway, and Willow's integrated R&D team
in California has the full
capabilities to deliver at all stages of the development cycle. The
Company's established technology, capabilities, and manufacturing
network can now enable biobased production for a diverse set of
industries.
While the market for biosynthetically produced cannabinoids has
not materialized to the extent originally anticipated, Willow
remains optimistic about the long-term market potential for these
ingredients and continues to optimize its production process.
While the market for biosynthetically produced cannabinoids
continues to develop, Willow will utilize it's proven
FutureGrownTM platform to partner with companies in the
personal care, food and beverage, and pharmaceutical markets,
providing access to pure, consistent and sustainable functional
ingredients. So far this year the Company has announced its first
partnered, non-cannabinoid program, and its first new
non-cannabinoid functional ingredient, Astaxanthin. Willow is
excited to continue to be adding partnerships and products,
expanding its platform and de-risking its portfolio.
About Willow Biosciences
Inc.
Willow develops and produces high-purity ingredients for the
personal care, food and beverage, and pharmaceutical markets.
Willow's FutureGrownÔ biotechnology platform allows large-scale
production with sustainability at its core. Willow's R&D team
has a proven track record of developing and commercializing
bio-based manufacturing processes and products to benefit our B2B
partners and their customers.
Specified Financial
Measures
This press release contains certain specified financial
measures, as described below, which do not have standardized
meanings as prescribed by GAAP. As these non-GAAP financial
measures are commonly used, the inclusion is useful to investors,
however these amounts may not be comparable with the calculation of
similar measures by other companies.
"Working capital (non-GAAP financial measure)" is
calculated as total current assets minus total current liabilities.
Management utilizes working capital to monitor its liquidity,
capital management and its ability to fund current operations.
Please refer to the MD&A for additional information relating
to specified financial measures. The MD&A can be accessed
either on Willow's profile on www.sedar.com.
Forward-Looking
Statements
This news release may include forward-looking statements
including future-oriented financial information and financial
outlooks within the meaning of securities laws, opinions,
assumptions, estimates and the Company's assessment of future plans
and operations, and, more particularly, statements concerning: the
continued development of Willow's FutureGrown™ CBG, and anticipated
timing of GRAS status relating thereto; development and commercial
production of FutureGrown™ Astaxanthin; the demand and market size
potential of the synthetic ingredients industry; and the business
plan of the Company, generally, including becoming a leader in
precision fermentation, research and production of functional
ingredients. When used in this news release, the words "will,"
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "should," and similar expressions are intended to be
among the statements that identify forward-looking statements. The
forward-looking statements are founded on the basis of expectations
and assumptions made by the Company which include, but are not
limited to: the success of Willow's strategic partnerships,
including the development of future strategic partnerships; the
financial strength of the Company; the ability of the Company to
fund its business plan using cash on hand and existing resources;
the market for Willow's products, including FutureGrown™ CBG and
FutureGrown™ Astaxanthin; the ability of the Company to obtain and
retain applicable licences; the ability of the Company to obtain
suitable manufacturing partners and other strategic relationships;
and the successful implementation of Willow's commercialization and
production strategy, generally. Forward-looking statements are
subject to a wide range of risks and uncertainties, and although
the Company believes that the expectations represented by such
forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ from the
Company's expectations, including but not limited to: the
biotechnology industry in general; the success of the Company's
research and development strategies; infringement on intellectual
property; failure to benefit from partnerships or successfully
integrate acquisitions; uncertainty of costs and expenses due to
inflationary pressures; actions and initiatives of federal and
provincial governments and changes to government policies and the
execution and impact of these actions, initiatives and policies;
import/export and research restrictions for cannabinoid-based
operations; the size of the medical-use and adult-use cannabinoid
market; competition from other industry participants; adverse U.S.,
Canadian and global economic conditions; adverse global events and
public-health crises, including the current COVID-19 outbreak;
failure to comply with certain regulations; departure of key
management personnel or inability to attract and retain talent; and
other factors more fully described from time to time in the reports
and filings made by the Company with securities regulatory
authorities. Please refer to the Company's most recent annual
information form and management's discussion and analysis for
additional risk factors relating to Willow, which can be accessed
either on Willow's website at www.willowbio.com or under the
Company's profile on www.sedar.com.
Any financial outlook and future-oriented financial information
contained in this document regarding prospective financial
performance, financial position, cash balances or revenue is based
on assumptions about future events, including economic conditions
and proposed courses of action based on management's assessment of
the relevant information that is currently available. Projected
operational information contains forward-looking information and is
based on a number of material assumptions and factors, as are set
out above. These projections may also be considered to contain
future-oriented financial information or a financial outlook. The
actual results of the Company's operations for any period will
likely vary from the amounts set forth in these projections and
such variations may be material. Actual results will vary from
projected results. Readers are cautioned that any such financial
outlook and future-oriented financial information contained herein
should not be used for purposes other than those for which it is
disclosed herein.
The forward-looking statements contained in this news release
are made as of the date hereof and the Company does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, except as required by applicable law.
The forward-looking statements contained herein are expressly
qualified by this cautionary statement.
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SOURCE Willow Biosciences Inc.