– Product development focused on the production of powder formulations of oat beta glucan and avenanthramides for cosmeceuticals market

– Technology development focused on the PGX pilot scale units

– Q3 2023 sales of $2,619,000 vs $3,845,000 in Q3 2022; YTD sales of $7,983,000 vs $15,517,000

– Ended the quarter with $11.4 million in cash allowing funding for planned pipeline and technology developments

EDMONTON, Alberta, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Ceapro Inc. (TSXV:CZO, OTCQX:CRPOF) ("Ceapro" or the "Company"), a growth-stage biotechnology company focused on the development and commercialization of active ingredients for healthcare and cosmetic industries, today announced financial results and operational highlights for the third quarter and nine months ended September 30, 2023.

"While the base business has experienced some challenges, mainly due to changes in the marketplace, we are very encouraged by the significant advancements we have made in new products and technologies development. Further, over the past quarter we remained very active with strategic corporate initiatives aimed towards achieving a stated objective related to uplisting Ceapro to an international stock exchange. We are also very pleased with the recent signing of an extended supply and distribution agreement reinforcing our relationship with long-time partner Symrise," stated Gilles Gagnon, M.Sc., MBA, President and CEO.

Corporate and Operational Highlights

Pipeline Development:

The Company's focus is on avenanthramides, beta glucan from oat and yeast and new chemical complexes/delivery systems.

Avenanthramides & Oat Beta Glucan

Marketed products:

Powder formulations for cosmeceuticals

Successfully developed powder formulations of oat beta glucan to serve the cosmetic market, especially in China. Such formulations are to be resolubilized locally by Symrise and used for hair care and facial masks.
Developed powder formulation of high avenanthramides concentration for enriched skin formulations. Of note, Ceapro's partner Symrise relaunched under a solid form an avenanthramide derivative product that they had marketed for almost two decades. While this relaunched analog is a byproduct from another oat-based extracted product not sold by Ceapro, it is produced in very small volumes and does not compete with Ceapro's products nor with Symrise-Ceapro exclusive customers. However, the relaunch of this product by Symrise might be a proof of concept demonstrating an appetite from the cosmeceutical market to use powder formulations. Symrise and Ceapro are jointly assessing such potential opportunities.

Clinical Development:

Avenanthramides (AVS)

Formulation:

Stability studies are ongoing for the 30mg and 240mg pills formulation manufactured, packaged and labeled by Corealis Inc. GMP Manufacturing Services.

Phase 1-2a Clinical Trial:

Completed development of a bioassay for analytical measurement of avenanthramides in blood and urine during the hospital stay of healthy subjects.
Subsequent to quarter, announced initiation of recruitment and enrollment of healthy subjects for Phase 1. Projected dosing dates are scheduled between December 2-9, 2023.

Pre-Clinical Development:

Avenanthramides & Oat Beta Glucan

Wound Healing-Tissue Regeneration:

Following positive results from animal studies conducted by the Angiogenesis Foundation, announced next steps with new studies focusing on speed of healing and molecular profiling of tissue regeneration induced by oat-derived bioactive products. Studies are ongoing.

Yeast Beta Glucan (YBG) - Potential Inhalo-Therapeutic

Following the announcement of encouraging results made at two major international conferences earlier this year demonstrating that PGX-YBG is respirable and able to safely and reliably reprogram macrophages in the lungs in pre-clinical mouse models, additional research at McMaster University clearly showed that PGX-YBG gets into the macrophage cell. This important finding further supports the potential of YBG to act as a stand-alone and/or a carrier for other bioactives when transported by macrophages cells.

Immune/Energy Booster:

Ongoing studies for testing and standardization of loading capacity of CoQ10 by YBG which is a requirement for dose selection when assessing safety and efficacy.
Protocol designed for a head-to-head study in animals for testing immune properties of PGX-YBG against a commercial formulation.

Yeast beta glucan is the product that will be used for the PGX scale-up project at pilot scale levels of 50L and 100L vessels.

Technology

Malted Technology (Avenanthramides)

Pursued development of enriched formulations with high concentration of avenanthramides to serve some nutraceutical markets.

Pressurized Gas eXpanded Technology (PGX)

Subsequent to quarter, announced the signing of a technical agreement with Austrian based NATEX Prozesstechnologie GmbH for the scale up of the PGX unit at a 100L level. This decision results from a fully reviewed plan for the PGX scale up project where the existing PGX demonstration unit in Edmonton (10L capacity) is being simultaneously scaled up by factors of 5 and 10 times respectively in Edmonton and in Vienna. The goal being to reduce technical risk and time to commercialization. Projects are within timelines previously announced. The 50L capacity to be completed by year-end and commissioned by end of Q1 2024 and the 100L to be completed during Q3 2024.

Corporate

Signed an extended supply and distribution agreement reinforcing vote of confidence with long-time partner, Symrise AG.
Continued to assess possible corporate strategies to support the accelerated growth of the Company along with stated objective of uplisting to Nasdaq.

Financial Highlights for the Third Quarter and Nine-Month Period Ended September 30, 2023

Total sales of $2,619,000 for the third quarter of 2023 and $7,983,000 for the first nine months of 2023 compared to $3,845,000 and $15,517,000 for the comparative periods in 2022. The decrease in revenues for the first nine months was driven by an overall decrease in sales volumes of 55% and was a result of lower sales of all the Company's products.
Net loss of $1,040,000 in Q3 2023 compared to a net income of $1,010,000 in Q3 2022 and a net loss of $2,580,000 for the first nine months of 2023 compared to a net income of $4,628,000 for the comparative period of 2022.
R&D investments were $585,000 for Q3 2023 compared to $314,000 for the same period in 2022 and $2,085,000 for the first nine months of 2023 compared to $1,213,000 for the same period in 2022. The significant increase in 2023 partially results from increased investment in a Phase 1 study with avenanthramides recently initiated at the Montreal Heart Institute as well as investment in other projects including a bioactivity analysis on our active ingredients and the development of new powder and oral formulations of our active ingredients.
Cash flows used in operations of $2,017,000 for the first nine months in 2023 vs cash generated from operations of $5,644,000 in 2022.
Positive working capital balance of $16,368,000 as of September 30, 2023.

"While the base business has been significantly impacted during the first nine months of 2023 due to various economic factors and organizational changes in one major customer, we remain in a solid financial position and will continue to focus our efforts on the development of new products and technologies using cash in hand while continuing to assess different market initiatives to grow our base and create new business with new products and customers," concluded Mr. Gagnon.

CEAPRO INC.
Condensed Interim Consolidated Balance Sheets
Unaudited

	September 30,	December 31,
	2023	2022
	$	$

ASSETS
Current Assets
Cash and cash equivalents	11,355,731	13,810,998
Trade receivables	982,895	2,820,300
Other receivables	81,844	64,808
Inventories (note 4)	5,370,967	3,757,040
Prepaid expenses and deposits	214,371	135,133

Total Current Assets	18,005,808	20,588,279

Non-Current Assets
Investment tax credits receivable	854,895	854,895
Deposits	76,954	76,954
Licences (note 5)	10,366	12,588
Property and equipment (note 6)	14,996,189	16,201,755

Total Non-Current Assets	15,938,404	17,146,192

TOTAL ASSETS	33,944,212	37,734,471

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	1,246,197	1,730,377
Current portion of lease liabilities (note 7)	391,241	370,460

Total Current Liabilities	1,637,438	2,100,837

Non-Current Liabilities
Long-term lease liabilities (note 7)	1,953,295	2,248,577
Deferred tax liabilities	390,109	1,095,968

Total Non-Current Liabilities	2,343,404	3,344,545

TOTAL LIABILITIES	3,980,842	5,445,382

Equity
Share capital (note 8 (b))	16,721,867	16,694,625
Contributed surplus (note 8 (e))	4,941,386	4,714,404
Retained earnings	8,300,117	10,880,060

Total Equity	29,963,370	32,289,089

TOTAL LIABILITIES AND EQUITY	33,944,212	37,734,471

CEAPRO INC.
Condensed Interim Consolidated Statements of Net (Loss) Income and Comprehensive (Loss) Income
Unaudited

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2023		2022		2023		2022
			Restated				Restated
			(note 3)				(note 3)
	$		$		$		$

Revenue (note 14)	2,618,973		3,845,370		7,982,542		15,517,393
Cost of goods sold	1,538,950		1,572,538		4,226,411		5,703,731

Gross margin	1,080,023		2,272,832		3,756,131		9,813,662

Research and product development	584,665		314,250		2,085,127		1,213,455
General and administration	1,972,884		869,110		5,119,395		2,707,430
Sales and marketing	11,837		6,160		33,474		20,707
Finance costs (note 10)	31,450		31,382		152,894		151,592

(Loss) income from operations	(1,520,813	)	1,051,930		(3,634,759	)	5,720,478

Other income (note 11)	(195,693	)	(271,162	)	(348,957	)	(339,965	)

(Loss) income before tax	(1,325,120	)	1,323,092		(3,285,802	)	6,060,443

Deferred tax (benefit) expense	(284,663	)	312,625		(705,859	)	1,431,981

Net (loss) income and comprehensive (loss) income for the period	(1,040,457	)	1,010,467		(2,579,943	)	4,628,462

Net (loss) income per common share (note 17):
Basic	(0.01	)	0.01		(0.03	)	0.06
Diluted	(0.01	)	0.01		(0.03	)	0.06

Weighted average number of common shares outstanding (note 17):
Basic	78,291,438		78,192,923		78,265,631		77,873,310
Diluted	78,291,438		78,817,665		78,265,631		78,519,944

CEAPRO INC.
Condensed Interim Consolidated Statements of Cash Flows
Unaudited


	2023		2022
			Restated
			(note 3)
Nine Months Ended September 30,	$		$
OPERATING ACTIVITIES
Net (loss) income for the period	(2,579,943	)	4,628,462
Adjustments for items not involving cash
Finance costs	97,894		96,592
Depreciation and amortization	1,458,429		1,415,361
Deferred income tax (benefit) expense	(705,859	)	1,431,981
Share-based payments	237,324		72,926
	(1,492,155	)	7,645,322
CHANGES IN NON-CASH WORKING CAPITAL ITEMS
Trade receivables	1,837,405		(817,830	)
Other receivables	(17,036	)	(34,006	)
Inventories	(1,613,927	)	(956,409	)
Prepaid expenses and deposits	(74,713	)	9,046
Accounts payable and accrued liabilities relating to operating activities	(558,953	)	(105,557	)
	(427,224	)	(1,904,756	)
Net (loss) income for the period adjusted for non-cash and working capital items	(1,919,379	)	5,740,566
Interest paid	(97,894	)	(96,592	)
CASH (USED IN) GENERATED FROM OPERATIONS	(2,017,273	)	5,643,974
INVESTING ACTIVITIES
Purchase of property and equipment	(250,641	)	(326,544	)
Deposits relating to the purchase of equipment	(4,525	)	-
Accounts payable and accrued liabilities relating to investing activities	74,773		(47,754	)
CASH USED IN INVESTING ACTIVITIES	(180,393	)	(374,298	)
FINANCING ACTIVITIES
Stock options exercised	16,900		75,640
Repayment of lease liabilities	(274,501	)	(216,236	)
CASH USED IN FINANCING ACTIVITIES	(257,601	)	(140,596	)
(Decrease) increase in cash and cash equivalents	(2,455,267	)	5,129,080

Cash and cash equivalents at beginning of the period	13,810,998		7,780,989

Cash and cash equivalents at end of the period	11,355,731		12,910,069

The complete financial statements are available for review on SEDAR at https://sedar.com/Ceapro and on the Company's website at www.ceapro.com.

About Ceapro Inc.

Ceapro Inc. is a Canadian biotechnology company involved in the development of proprietary extraction technology and the application of this technology to the production of extracts and "active ingredients" from oats and other renewable plant resources. Ceapro adds further value to its extracts by supporting their use in cosmeceutical, nutraceutical, and therapeutics products for humans and animals. The Company has a broad range of expertise in natural product chemistry, microbiology, biochemistry, immunology and process engineering. These skills merge in the fields of active ingredients, biopharmaceuticals and drug-delivery solutions. For more information on Ceapro, please visit the Company's website at www.ceapro.com.

Forward-looking Statements

This press release contains forward-looking statements based on our assessment of Ceapro's future plans and operations as of the date of this press release. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. By their nature, forward-looking statements are subject to numerous risks and uncertainties. Readers are cautioned that the assumptions used in the preparation of forward-looking information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements in this press release. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Ceapro will derive from them. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise unless required by law.

For more information contact:

Jenene Thomas

JTC Team, LLC

Investor Relations and Corporate Communications Advisor

T (US): +1 (833) 475-8247

E: czo@jtcir.com

This press release does not express or imply that the Company claims its product has the ability to eliminate, cure or contain the SARS-2-CoV-2 (COVID-19) at this time.

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