June, 2020 | Abattis Bioceuticals
VANCOUVER, BRITISH COLUMBIA / June 17, 2020 / Abattis Bioceuticals Corp (the “Company” or “Abattis”) (CSE:ATT) (OTC:ATTBF) is pleased to provide a comprehensive corporate and operational update.
The Company’s common shares listed on the Canadian Stock Exchange (“CSE”) remain halted as Abattis continues to undergo a comprehensive review process with the British Columbia Securities Commission (“BCSC”). The Company has worked with the BCSC since August of 2019 to respond to each of its requests and looks forward to the review process being completed soon, so that the Company’s shares can recommence trading on the CSE. During this review process, the Company has satisfied its continuous disclosure obligations and remains in good standing.
Despite the trading halt, the Company continues to operate its business and has just recorded one of its strongest quarters in Company history. With significant reductions in overheads, consulting costs and the shutdown of all non-profitable divisions, combined with a significant increase in revenue, the Company was able to continue operating despite not having the ability to raise funds in the capital markets. The Company has focused on cash-flow generating activities, which it believes will serve as a solid platform to grow the Company once again once it is able to resume trading.
Pro Natura B.V
All of the growth in the Company’s revenues can be attributed to the success of its European-based nutraceutical company, Pro Natura B.V (“Pro Natura”). The acquisition of Pro Natura allowed the Company to enjoy record sales for the fiscal year ended, September 30, 2019. The Company remains focused on creating shareholder value and organic growth of this business by implementing strategies to optimize operations and increase revenues.
The primary driver for increased sales has been the introduction of new products. These products include a selection of CBD oils as well as a new women’s line of products which includes collagen products, vegan proteins and greens. Pro Natura has seen a very positive response to both lines of products and plans to continue to bring on new products to grow its profit margins in the future.
The Company is also pleased to announce the sale of Comfort through its Pro Natura division. Comfort is a nutraceutical that has been developed by Abattis’ research scientists to activate the endocannabinoid system and nourish endorphin release in response to pain. Comfort sales were first launched in Canada in November 2018, and have seen success in sales. The Company is pleased to see similar success in the European market and is excited for the launch of Comfort Extra Strength.
The launch of these products has triggered the first two milestones under the Share Purchase Agreement dated March 27, 2019, announced in the news release dated April 2, 2019. Per the terms of the agreement, the Company must make payments of €5,000,000 for the first milestone and €4,000,000 for the launch of CBD products and Comfort, respectively, to the vendor of Pro Natura. The Company intends to raise capital to satisfy these obligations once it resumes trading on the CSE.
Update on Financials
The Company succesfully filed its annual audited financial statements and the related management discussion and analysis certifications for year ended September 30, 2019 on April 29, 2020.
Following the issuance of a cease trade order in Ferbruary 2019, the Company filed an application for revocation in August 2019, and continues to work with the BCSC to respond to all questions and comments and hopes to be granted the revocation soon. As part of the review, the BCSC requested to review the Company’s interim financials for period ended December 31, 2019 prior to filing on SEDAR for public review.
“Though the past eighteen months have been a challenge for the Company, we have seen many positive things unfold that speak to the character of the Company,” comments Robert Abenante, President and CEO of Abattis. “After we were unable to meet our filing requirements last year, we took a step back and evaluated our operations and our people. Throughout the year, we replaced almost all of our management team and the Board of Directors. The new management team has worked very hard to resolve all regulatory, financial, and accounting issues, while our remaining operating teams have posted strong results even during the current pandemic. I am very grateful to our team’s Board, Management, Operating Teams and our various Stakeholders for their loyalty, dedication, and commitment to the Company during this past year. Our recent financial results are a testament to their efforts and their character,” added Mr. Abenante.
COVID-19 Safety Update
In response to the recent coronavirus (“COVID-19”) outbreak, the Canadian government has acted by testing and treating symptomatic individuals, enforcing social distancing, closing schools and non-essential businesses and requesting the community to stay inside their homes.
In accordance with recommendations of the Canadian government, Abattis closed its head office in March, in an effort to keep its staff safe. The office remains closed but operations are still continuing with its staff working remotely.
About Abattis Bioceuticals Corp.
Abattis is a life sciences and biotechnology company which aggregates, integrates, and invests in cannabis technologies and biotechnology services for the legal cannabis industry developing in Canada. The Company has successfully developed and licensed natural health products, medicines, extractions, and ingredients for the biological, nutraceutical, bioceutical, and cosmetic markets. The Company is also seeking to acquire exclusive intellectual property rights to agricultural technologies to be employed in extraction and processing of botanical ingredients and compounds. The Company follows strict standard operating protocols and adheres to applicable laws of Canada and foreign jurisdictions.
ABATTIS BIOCEUTICALS CORP.
Robert Abenante, President & CEO
For more information, please visit the Company’s website at: www.abattis.com.
For inquiries please contact firstname.lastname@example.org.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements. The use of any of the words including but not exclusive to “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “intends”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: (i) completion of the BCSC review process; (ii) the Company’s focus on cash-flow operations going forward; (iii) the implementation of new products and the results thereof; (iv) milestone payments under the Pro Natura acquisition agreement; and (v) the Company’s activities in response to the COVID-19 pandemic. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Additional risk factors are included in the Company’s Management’s Discussion and Analysis, available under the Company’s profile on www.sedar.com. The forward-looking statements are made as at the date hereof and the Company disclaims any intent or obligation to publicly update any forward-looking statements, where because of new information, future events or results, or otherwise, except as required by applicable securities laws.
The CSE (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this news release.