MONTREAL, May 30, 2018 (GLOBE NEWSWIRE) -- Relevium Technologies Inc. (TSX-V:RLV) (OTCQB:RLLVF) (Frankfurt:6BX) (the “Company” or “Relevium”) is pleased to announce its financial and operating results for the three and nine months’ period ended March 31, 2018.
Highlights
- Nine-month sales totalled $3,157,644 including Q3 sales of $1,063,176 recorded by Bioganix®
- Nine-month gross profit of $1,806,515 (57%), including Q2 gross profit of $575,495 (56%)
- In this reporting period, the Company:
- Initiated a market test for the eventual launch of a complete Aloe Vera based health support products and cosmetics
- Revealed a new brand architecture for Bioganix®
- Conducted the initial joint-launch of Planet Hemp with HEMPCO
- Established its presence for the European marketplace in partnership with Amazon
- Initiated a market test for the eventual launch of a complete Aloe Vera based health support products and cosmetics
- The Company increased product offerings by 17% to 38 products with further plans to expand to over 50 products in 2018
Results from Operations
During the nine-month period ended March 31, 2018, the Bioganix brand generated $3,157,644 in sales revenues with a gross profit of $1,806,515. A gross margin of 57% continues to remain stable and adjusted EBITDA for the brand remains positive at 25%. On a consolidated basis, the Company reported an increase in expenses in three key areas:
- Selling and Marketing Expenses: The reporting period was marked by a period of preparation for market expansion, which included increased expenses relating to initiatives to build brand equity, expand geographically, launch of new products and build the operating team. The investments included brand repositioning and branding services, promotions and new product launches, increased digital marketing campaigns and other value-added services. The total marketing expense for the nine-month was reported at $1,252,668 with $313,167 allocated to market expansion, branding and product launch initiatives.
- Interest and Accretion Expenses: The Company reported a total of $612,040 ($348,422 of interest and $263,618 of accretion) in the nine-month reporting period for servicing the long-term convertible debt currently on the balance sheet.
- Share-based compensation: The Company reported $554,110 non-cash share-based compensation, reflecting stock options issued to directors, consultants and management in the reporting nine-month period.
These three key areas represent $2,418,818 or 67% of all the Company’s operating expenses for the nine-month reporting period. The Company reported net and comprehensive losses of $1,787,985 ($566,070 in 2017) and Adjusted Earnings Before Interest, Taxes and Amortization totaling $384,151 in the same period.
Aurelio Useche, President and CEO of Relevium stated: "We have increased our marketing and sales spend significantly to successfully launch a new brand, new products and to expand into new markets as previously announced.” Mr. Useche stated further: “Revenues from the original Bioganix product line remain as expected and believe that the additional investments will bear fruit once our presence in Amazon UK and Walmart.com is strong and the new products have taken hold within our customer base.”
For more information, the Company’s previous filings may be reviewed by visiting www.sedar.com and also our website www.releviumtechnologies.com.
Adjusted EBITDA and Non-IFRS Financial Measures
The Management Discussion and Analysis for the same period includes certain measures which are not defined terms in accordance with IFRS such as Adjusted EBITDA. The term “Adjusted EBITDA” refers to net income or net loss after adjusting for interest, taxes, depreciation and costs relating to acquisitions and their integration.
The Company believes that Adjusted EBITDA is useful, supplemental information as it provides an indication of the results generated by the company’s main business activities prior to taking into consideration how those activities are financed and taxed and prior to taking into consideration depreciation and particularly the costs of integration of acquisitions.
Adjusted EBITDA is also a key measure used by the Company’s management and its Board of Directors to understand and evaluate the Company’s operating performance, to prepare annual budgets, and to help develop operating plans. Adjusted EBITDA is not a measure of performance under IFRS and should not be considered in isolation or as a substitute for net and comprehensive income or loss prepared in accordance with IFRS or as a measure of operating performance or profitability.
Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other companies.
About Relevium Technologies
Relevium is a TSXV-listed company focused on growth through the acquisition of businesses, products and/or technologies with a focus on e-commerce in the growing health and wellness sector. Relevium Technologies Inc. also holds patented intellectual property for the use of static magnetic fields for application on wearable devices.
Neither 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 obtain stock exchange approval of the Offering, the proposed acquisition will occur as anticipated, that the Company will raise sufficient funds, and that the Company will obtain all requisite approvals of the acquisition. 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 acquisitions may not occur as planned; the timing and receipt of requisite approvals and failure to raise sufficient funds under the Offering. 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.
Aurelio Useche
President and CEO
For more information about this press release:
Tel: +1.888.528.8687
RELEVIUM TECHNOLOGIES INC
Email: investors@releviumcorp.com
Website: www.releviumtechnologies.com
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See “Adjusted EBITDA and Non-IFRS Financial Measures”