Relevium Technologies Provides Corporate Update and Fiscal Year End Results
MONTREAL, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Relevium Technologies Inc. (TSX.V:“RLV”, OTCQB:“RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”) is pleased to provide a corporate update and summarized discussion on the results for its first year of operations since the acquisition of Bioganix®.
BGX E-Health, a wholly-owned subsidiary of Relevium Technologies, has achieved significant milestones in it’s first twelve months of operations, including the integration of the operations of its Nutraceutical online retail business with over 40 trusted products in the US and has commenced the commercial expansion into the European markets, the launch of four products, the extension of its products through the Bioganix® Gold Series brand offered exclusively through Walmart.com and the introduction of over 13 new high end products into its mainstream Bioganix® brand.
During the reporting period, the company partnered with Hempco Canada and Curaçao Ecocity Projects N.V. to conduct an initial test launch of hemp derived nutritional products and aloe based nutritional and cosmetic products through its online assets. Shortly after the reporting period, the Company announced it would launch a line of hemp derived, organically grown, whole plant CBD products under its new brand LeefyLyfe® in the European market.
Biocannabix Health Corporation, a wholly owned subsidiary of Relevium Technologies, has been focused on securing the health Canada license for its facility in Ville Saint-Laurent, Quebec. During the reporting period, the Company selected the lead consultant for the project and secured the location for operations. After the reporting period, Biocannabix announced a strategic investment into Cannakids.org, a California based medical cannabis company focused on Pediatric and Geriatric applications. The Company also secured the Canadian exclusive rights to Cannakids formulations and Standard Operating Procedures to develop the Pediatric and Geriatric markets in Canada (see subsequent events note 23 to the Consolidated Financial Statements as filed on Sedar October 26, 2018).
We have achieved significant milestones this year, including the rationalization of acquired classic product line of Bioganix®, the development of strategic partnerships to add value to the trusted products of the brand and the Hemp CBD product line in Europe. Perhaps the most telling of the developments of the Company is the focus of Biocannabix into pediatric and geriatric applications through its initial investment into Cannakids. We expect this to be the successful foundation for the bio-medical cannabis business of the company,
said Aurelio Useche, CEO.
Summarized Results for the fiscal year ended June 30, 2018
Sales for the fiscal year 2018 were $4,152,824 (nil in 2017) with a gross profit or $2,279,524 or 55% gross margin. Net comprehensive loss was $2,908,635 for fiscal 2018 compared to a net comprehensive loss of $2,584,738 for fiscal 2017. Net cash used in operating activities was $2,360,856 for fiscal 2018 compared to $1,289,023 in fiscal 2017, including non-cash items of $1,681,376 in 2018 compared to 1,506,307 in 2017. The company ended the year with $2,075,050 in cash and cash equivalents and a negative working capital of $532,187 primarily due to long-term debt booked as short-term debt, which was subsequently converted into equity. (see subsequent events note 23 to the Consolidated Financial Statements as filed on Sedar October 26, 2018)
The first-year results including the operations from BGX E-Health was as expected, a year of transition, heavy investment into re-branding, geographic expansion, and product development, all of which negatively affected the consolidated profitability of the Company. This investment cycle is expected to continue into the second quarter of the new year as the Company prepares to launch LeefyLyfe® and to introduce Cannakids into the Canadian marketplace. We believe these investments have the potential to generate large increases in future revenues and earnings for Relevium,
stated Aurelio Useche, CEO.
About Relevium Technologies
Relevium is a publicly-traded company that operates in the health and wellness industry, including legal cannabis, with a primary focus on online distribution. The principal business of the Company is the identification, evaluation, acquisition and operations of brands and businesses in the Health and Wellness markets and medical cannabis. 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, BGX markets dietary supplements, nutraceuticals, sports nutrition and cosmeceuticals primarily through its Bioganix® brand portfolio in the US and Europe. Relevium’s brands such as Bioganix® are sold at some of the world’s largest retailers including such as Walmart.com and Amazon.com.
The Company’s strategy for growing its brands includes expanding its product offering, adding new distribution channels and developing partnerships that add value through exclusive ingredients. BGX is currently testing a complete line of dietary supplements derived from Cannabis with an initial focus on hemp derived, whole plant organic extract rich in CBD (cannabidiol). The product line will be marketed through its brand LeefyLyfe® and will be sold first in Europe and then North America. The Company uses cannabinoids and ingredients that have achieved GRAS status (generally accepted as safe) to create brands that are sold via wholesale channels, retail channels and online distribution.
Biocannabix Health Corporation (BCX): Based in Montreal, Quebec, BCX is an entrepreneurial venture to establish a vertically integrated medical cannabis company in the Nutraceutical space. Located in the city of Saint Laurent, the Company is in the process of licensing and retrofitting a facility that will host a genetically focused cannabis growth, extraction, formulation, research and development and encapsulation of proprietary Nutraceutical and Medical products.
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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