MONTREAL, Jan. 25, 2021 (GLOBE NEWSWIRE) — Relevium Technologies Inc. (TSX.V:“RLV”, OTCQB:“RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”), is pleased to report the completion of the interim financial statements and MD&A for the three-month period ended September 30, 2020.
The Company’s overall performance for the three-month period ended September 30, 2020 was influenced primarily by the continued impact of the Covid-19 global pandemic on the Company’s operations. During the first quarter of fiscal year ending June 30, 2021, the company reported sales of $333,116 (compared to $1,017,686 in 2019), a decrease of $684,570 driven primarily by marketplace restrictions for inbound inventory imposed by the Amazon marketplace, supply chain shortages and subsequent liquidity issues affecting overall operations.
Gross margins improved by four percentage points from 54% to 58%, primarily the result of changes to the sales mix, which focused on the top 10 products. Cost of goods sold for the reporting period were $139,844 on $333,116 of sales versus $472,351 on $1,017,686 for 2019.
Aurelio Useche, CEO for Relevium stated: In response to the economic crisis that resulted from the ongoing global pandemic, the Company has focused on and made considerable changes to its costs and expense structure, in order to adapt to the situation. The resulted changes led to lower operating expenses of $532,829 as compared to $1,395,681. This major reduction was attributed to significant reductions in selling and marketing expenses, lower general, administrative and consulting fees”. Aurelio Useche added: “Although sales revenues were adversely affected, we managed to report a significant reduction in net and comprehensive losses of $327,232, as compared to $853,000 in 2019. The reduction totaling $525,768 translated in a net loss per share of $0.002 as compared to a net loss per share of $0.006 in 2019”
FINANCIAL HIGHLIGHTS FOR Q1 OF THE FISCAL YEAR ENDING JUNE 30, 2021
- Total assets of $32,105,408 as at September 30, 2020 (June 30, 2020: $4,334,466), an increase of $27,770,942, primarily driven by Cash in Trust of $15,721,826 (June 30, 2020: NIL), Deposits and Prepaids of $12,019,043 (June 30, 2020: $85,348) and Accounts Receivable of $634,835 (June 30, 2020: 380,546).
- Total liabilities of $32,074,371 as at September 30, 2020 (June 30, 2020: $4,278,944) This is primarily due to customer deposit liability of $27,811,768.
- Shareholders’ equity was $31,037 as at September 30, 2020 (June 30, 2020: $55,522). This is primarily due to an increase reported deficit of $18,790,890 (June 30, 2020: $18,451,333).
- The Company reported $333,116 in revenues for the reporting period ($1,017,686 for 2019), representing a decrease of $684,570 over the comparable period.
- Cost of goods sold for the reporting period were $139,844 on $333,116 of sales versus $472,351 on $1,017,686 for 2019.
- Gross margins improved by four percentage points from 54% to 58%, primarily the result of changes to the sales mix, which focused on the top 10 products.
- Total expenses for reporting period were $532,829 ($1,395,681 for 2019).
- The net comprehensive loss for three-month period ended September 30, 2020 was $327,232 ($853,000 in 2019).
- Net loss per share of $0.002 during the reporting period, as compared to a net loss per share of $0.006 in 2019.
The Company remains focused on reduced operating expenses as the operating environment due to the pandemic slowly begins to move to a new normal. The Company remains focused on existing opportunities in the Personal Protective Equipment (“PPE”) market as well as its’ proprietary disinfectant line.
About Relevium Technologies
Relevium is a publicly traded Company that operates in the health and wellness industry, including cannabinoids, with a primary focus on online distribution. The principal business of the Company is the identification, evaluation, acquisition and operation of brands and businesses in the health and wellness markets and cannabinoids. The Company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness consumer products. Relevium operates through two wholly owned subsidiaries:
BGX E-Health LLC (BGX), based in Orlando, Florida, markets dietary supplements, nutraceuticals, sports nutrition and cosmeceuticals primarily through its Bioganix® brand portfolio in the US and Europe. Relevium’s premium brands are sold at some of the world’s largest retailers including Walmart.com and Amazon.com.
Biocannabix Health Corporation (BCX), based in Montreal, Quebec, is a biopharma nutraceutical Company focused on delivering pediatric endo-medicinal nutraceuticals for cannabinoid therapy.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, including the timing and completion of the proposed acquisitions, are forward-looking statements and contain forward-looking information. Generally, forward- looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including the assumptions that the Company will be able to apply for and ultimately obtain an ACMPR licence, the proposed business of Biocannabix will develop as anticipated, that the Company will raise sufficient funds to develop the Biocannabix business, and that the Company will obtain all requisite regulatory approvals. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the risk that the proposed business developments may not occur as planned; the timing and receipt of requisite approvals and failure to raise sufficient funds.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
President and CEO
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