Avivagen Inc. Announces Record Revenue for the Third Quarter Ending July 31, 2020
- Significant increase in revenue driven by significant new and existing customer orders
- Achieved product sales volume in Q3 equal to 85% of entire 2019 fiscal year volume
- Customers’ purchasing patterns confirm a recurring revenue business model
OTTAWA, Ontario--(BUSINESS WIRE)-- Avivagen Inc. (TSXV:VIV, OTCQB:VIVXF) (“Avivagen” or the “Corporation”), a world leader in natural alternatives to antibiotics with its OxC-beta™ technology, has announced its unaudited financial results for the third quarter of 2020.
For the three-month period ended July 31, 2020, the Corporation reported revenues of $612,530, an increase of $600,046 over the three-month period ended July 31, 2019 and also a significant increase over the second quarter of 2020 revenues of $29,625. The increase in revenues were driven by two major sales during the quarter, including record-setting orders from Mexico-based Industrias Melder and Philippines-based UNAHCO. Additional sales were also secured in markets including Taiwan and Thailand, while regulatory approval and distribution agreements secured during the quarter in Brazil have already led to the company’s first order in the fourth quarter in the third largest livestock feed market in the world.
“We are very pleased to report the strongest revenue quarter in the Corporation’s history, headlined by record-setting sales in some of the world’s most important feed production markets,” says Kym Anthony, Chief Executive Officer, Avivagen Inc. “We have made strong inroads worldwide, and continue to secure regulatory approvals and distribution agreements that provide us with access to some of the largest feed producers around the globe. As both our global customer base and recurring order volumes continue to grow we expect to see greater quarter-to-quarter consistency in sales volume in future periods, but our third quarter results are further evidence of our ability to quickly overcome any sales timing lumpiness to deliver consistent revenue growth and shareholder value on an ongoing basis.”
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications. By unlocking an overlooked facet of β-carotene activity, a path has been opened to safely and economically support immune function, thereby promoting general health and performance in animals. Avivagen is a public corporation traded on the TSX Venture and OTCQB® Venture Market exchanges under the symbols VIV and VIVXF, and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.
About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about β-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Brazil, Mexico, Philippines, Taiwan, New Zealand, Thailand, Australia, Malaysia, Mexico and Brazil.
Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions. Statements set out in this news release relating to customer purchasing patterns, the expected recurring nature of revenues, the possibility of securing additional regulatory approvals, the possibility of entering into additional distribution agreements, access to additional markets and customers, the expectation that revenues will become consistent quarter over quarter and the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as growth promoters are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, customers are generally under no obligation to purchase more Avivagen product, past revenues and buying patterns may not be indicative of future revenues and buying patterns, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics as growth promoters in livestock feeds, new distribution agreements may not be entered into within the timeframes expected or at all or Avivagen may not receive the expected benefit from such agreements and revenues may continue to be inconsistent on a quarter over quarter basis, all due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither 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.
Copyright © 2020 Avivagen Inc. OxC-beta™ is a trademark of Avivagen Inc.
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For more information:
Director of Investor Relations
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Chief Executive Officer
100 Sussex Drive, Ottawa, Ontario, Canada K1A 0R6
Head Office Phone: 613-949-8164
Source: Avivagen Inc.
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