Maintained production operations during COVID-19 pandemic, providing customers with essential products and completing integration of manufacturing site, while ensuring the health and safety of employees
Substantially increased sales, net profits and cash generated from operations during the year 2020, representing one of Ceapro's best performances in company history
R&D activities focused on advancing the development of innovative delivery systems and yeast beta glucan as a potential inhalable therapeutic for COVID-19

EDMONTON, Alberta, April 22, 2021 (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 operational highlights and financial results for the fourth quarter and full year ended December 31, 2020.

"We could not be prouder of our resilient employees who worked tirelessly to deliver one of the best ever performances in the Company's history during such a stressful year marked by the ongoing COVID-19 pandemic. While ensuring safety of our employees as our first priority, we were able to secure business continuity by putting more emphasis on production operations to serve our customers in the cosmetic sector. This approach, which has resulted in significant increase in sales, net profits and cash on hand, also allowed us to maintain investments in Research and Development as per our strategy to expand Ceapro's business model from a contract manufacturer/commodity company to a high-value life science/biopharmaceutical company offering innovative products and delivery systems to the healthcare sector," stated Gilles Gagnon, M.Sc., MBA, President and CEO, of Ceapro.

"In addition to excellent financial and operational results, main highlights of the year include the development of beta glucan from yeast and its potential as an inhalable therapeutic for COVID-19 patients as well as the development of new chemical complexes through the use of the PGX Technology. We are thrilled with the achievements made in 2020," added Mr. Gagnon.

2020 Corporate and Operational Highlights

Pipeline Development

Oat Beta Glucan:

Resumed enrollment of patients for the clinical trial with beta glucan as a cholesterol reducing natural pharmaceutical product. The study will enroll approximately 264 patients. To date, two thirds of the patients have been screened and randomized.
Received approval from Health Canada for an amendment to the protocol to allow evaluation of subjects with confirmed pathophysiological condition of hyperlipidemia who voluntarily request to be treated with beta glucan only, without regular dosing of statins. This significant change, allowing patients to receive beta glucan as a stand-alone therapy, has accelerated patient enrollment and is expected to expand the target addressable patient population.

Avenanthramides:

Announced the publication of positive results from study evaluating avenanthramides in exercise-induced inflammation in the international, peer-reviewed Journal of the International Society of Sports Nutrition. Positive results support anti-inflammatory claims for avenanthramides as a nutraceutical product and pave the way for a Phase 1 clinical trial as a potential pharmaceutical product.
Continued to monitor stability studies for liquid avenanthramides produced at a new manufacturing site as well as for the pharmaceutical-grade dry powder formulation of avenanthramides to be used in a human Phase 1 bioavailability and safety study.

New Products:

Cannabis

Received approval from Health Canada Controlled Substances and Cannabis Branch for a five-year research license with medical cannabis for the formulation of unique solid cannabinoid delivery systems using PGX technology.

Yeast Beta Glucan (YBG)

Developed an optimal formulation of YBG coming from various sources.
Confirmed capability of PGX Technology to optimize and standardize the size and morphology of yeast beta-glucan (PGX-YBG) suitable for lung inhalation.
Achieved the first milestones in successful development of PGX-processed yeast beta glucan product as a potential inhalable therapeutic for COVID-19 and other fibrotic endpoint diseases of the lung.
Conducted an in-vitro study with human cell lines demonstrating that PGX-YBG obtained from different sources exhibited significant stimulatory effect on human immune response through activation of beta glucan specific Dectin 1 receptors.
Ongoing PGX-YBG project with McMaster University conducted in parallel for naïve and preclinical animal models. To date, no safety issues have been encountered. The preclinical phase has been extended to identify the maximum tolerated dose.
Conducted additional in vitro PGX-YBG dose response study to correlate with upcoming McMaster animal study results. YBG induces immunomodulation without affecting inflammation pathways. This product is poised to become a key strategic asset for the Company.

New Chemical Complexes:

Developed new PGX-dried chemical complexes like sodium alginate and gum arabic impregnated with co-enzyme Q10 (CoQ10). Positive results published in peer-reviewed journals demonstrate the versatility of the PGX Technology and the potential to develop significant bioactive delivery systems. Key learnings from these studies pave the way for the scale-up of the technology at the commercial level.
Subsequent to year-end, Ceapro announced the successful completion of a long-term research program conducted with University of Alberta. This screening program allowed Ceapro to retain the most promising products and expand the PGX-based products pipeline.

Technology:

Performed significant technical upgrades of PGX pilot plant in Edmonton to allow production of yeast beta glucan for a potential clinical trial with COVID-19 patients.
Completed a feasibility study for the commercial scale up of the PGX Technology. Several manufacturers and existing supercritical plants were contacted in 2020 for the choice of equipment and location. Given excellent results obtained with the new yeast beta glucan product, it became clear that location of the first large scale PGX unit should be close to the best source of raw material which was found in Germany where the Company also acquired pieces of equipment suitable for the assembling of such unit. Production at the retained site will be mostly for the commercialization of yeast beta glucan as an immune booster and for alginate as a carrier for other bioactives.
Initiated installment in Edmonton of a commercial scale unit for impregnation of bioactives with PGX-processed biopolymers.
Pursued research collaboration projects with University of Alberta and McMaster University for the impregnation of various bioactives using PGX-processed biopolymers as potential delivery systems for multiple applications in healthcare.

Bioprocessing Operations

Completed the integration of production operations under one roof in Edmonton. Ceapro's dedicated production team successfully responded to the growing market demand for the cosmeceutical base business by producing over 250 metric tons of active ingredients in 2020, a 25% increase over the previous year.
Received renewal of the Site License from the Health Canada Natural Product Directorate. This License enables the Company to manufacture, package, label, release and distribute final products.

Corporate

Fully repaid loan with Agriculture Financial Services Corporation.
Announced expansion of a grant from National Research Council of Canada for the optimization and mass production of yeast beta glucan as a potential inhalable therapeutic for COVID-19 and other fibrotic end-point disease of the lung.
Pursued out-licensing discussions for PGX-processed new chemical complexes.
Secured DTC Eligibility for publicly traded shares under Ticker OTCQZ: CRPOF and to expand Company exposure to other markets with an emphasis in USA.

Financial Highlights for the Fourth Quarter and the Full Year 2020 Ended December 31, 2020

Total sales of $2,706,000 for the fourth quarter of 2020 and $15,121,000 for the full year of 2020 compared to $3,721,000 and $12,880,000 for the comparative periods in 2019. The 17% increase in revenue for the full year 2020 results from an 33% increase in sales of avenanthramides (mostly made to USA) partially offset by a 16% decrease in sales of beta glucan.
Net loss of $539,000 for the fourth quarter of 2020 and a net profit of $1,856,000 for the full year of 2020 compared to a net profit of $166,000 and a net loss of $1,133,000 for the comparative periods in 2019, a year over year improvement of $2,989,000 Third and fourth quarter 2020 were marked by the completion of the decommissioning of Leduc manufacturing site and the final integration of production operations in the Edmonton facility. These time-consuming moves resulted in some necessary adjustments in equipment at the new site. It also required additional training of relocated employees.
Cash generated from operations of $4,453,000, for the full year 2020 vs cash generated from operations of $882,000 for the full year 2019.
Positive working capital balance of $7,659,000 as of December 31, 2020.

"I strongly believe 2021 holds a lot of opportunity for Ceapro. Our focus remains on the health and safety of our associates during this COVID-19 pandemic crisis, followed by business continuity. Depending on the evolution of the COVID-19 pandemic, we expect Ceapro's cosmeceuticals base business to continue to grow and provide positive operating cash flows to support the expansion to a new business model from a contract manufacturer to a biopharmaceutical development company involved in nutraceuticals and pharmaceuticals. Based on a very solid foundation, a highly competent team, a healthy balance sheet and a very strong technology and product portfolio with the potential to access key large markets, we have all the key components for success," concluded Mr. Gagnon.

CEAPRO INC.
Consolidated Balance Sheets

	December 31,	December 31,
	2020	2019
	$	$

ASSETS
Current Assets
Cash and cash equivalents	5,369,029	1,857,195
Trade receivables	2,019,723	3,659,541
Other receivables	102,224	46,812
Inventories (note 3)	1,210,079	669,005
Prepaid expenses and deposits	348,845	178,908

	9,049,900	6,411,461
Non-Current Assets
Investment tax credits receivable	607,700	607,700
Deposits	82,124	85,755
Licences (note 4)	18,514	21,477
Property and equipment (note 5)	18,591,189	19,764,122
Deferred tax assets (note 14 (b))	874,304	378,643

	20,173,831	20,857,697

TOTAL ASSETS	29,223,731	27,269,158

LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued liabilities	1,067,622	1,291,204
Current portion of long-term debt (note 6)	-	111,865
Current portion of lease liabilities (note 7)	250,658	265,123
Current portion of CAAP loan (note 9)	72,263	72,942

	1,390,543	1,741,134
Non-Current Liabilities
Long-term lease liabilities (note 7)	2,648,917	2,775,627
CAAP loan (note 9)	-	61,580
Deferred tax liabilities (note 14 (b))	874,304	378,643

	3,523,221	3,215,850

TOTAL LIABILITIES	4,913,764	4,956,984

Equity
Share capital (note 8 (b))	16,511,067	16,401,677
Contributed surplus (note 8 (e))	4,682,393	4,650,090
Retained earnings	3,116,507	1,260,407

	24,309,967	22,312,174

TOTAL LIABILITIES AND EQUITY	29,223,731	27,269,158

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


	2020		2019
Year Ended December 31,	$		$

Revenue (note 16)	15,121,282		12,880,006
Cost of goods sold	7,498,996		7,434,654

Gross margin	7,622,286		5,445,352

Research and product development	1,881,883		2,393,607
General and administration	3,282,754		2,952,488
Sales and marketing	111,044		425,230
Finance costs (note 12)	231,271		260,684

Income (loss) from operations	2,115,334		(586,657	)

Other expenses (note 11)	(259,234	)	(549,379	)

Income (loss) before tax	1,856,100		(1,136,036	)

Income taxes
Current tax recovery	-		-
Deferred tax benefit	-		3,408

Income tax benefit	-		3,408

Total comprehensive income (loss) for the year	1,856,100		(1,132,628	)

Net income (loss) per common share (note 21):
Basic	0.02		(0.01	)
Diluted	0.02		(0.01	)

Weighted average number of common shares outstanding (note 21):
Basic	77,594,629		77,188,505
Diluted	78,143,033		77,188,505

CEAPRO INC.
Consolidated Statements of Cash Flows


	2020		2019
Year Ended December 31,	$		$
OPERATING ACTIVITIES
Net income (loss) for the year	1,856,100		(1,132,628	)
Adjustments for items not involving cash
Finance costs	153,538		171,249
Transaction costs	1,108		4,187
Depreciation and amortization	1,841,033		1,831,744
Foreign exchange gain on long-term debt	-		(307	)
Accretion	21,625		30,248
Deferred tax benefit	-		(3,408	)
Share-based payments	136,796		212,517
Net income (loss) for the year adjusted for non-cash items	4,010,200		1,113,602
CHANGES IN NON-CASH WORKING CAPITAL ITEMS
Trade receivables	1,639,818		(644,197	)
Other receivables	(55,412	)	87
Inventories	(541,074	)	41,703
Prepaid expenses and deposits	(88,839	)	154,106
Accounts payable and accrued liabilities relating to operating activities	(358,136	)	388,064
Total changes in non-cash working capital items	596,357		(60,237	)
Net income (loss) for the year adjusted for non-cash and working capital items	4,606,557		1,053,365
Interest paid	(153,538	)	(171,249	)
CASH GENERATED FROM OPERATIONS	4,453,019		882,116
INVESTING ACTIVITIES
Purchase of property and equipment	(528,707	)	(332,186	)
Purchase of leasehold improvements	(12,870	)	(6,007	)
Proceeds from sale of equipment	353		-
Deposits relating to investment in equipment	(77,467	)	187,790
Accounts payable and accrued liabilities relating to investing activities	134,554		(46,738	)
CASH USED IN INVESTING ACTIVITIES	(484,137	)	(197,141	)
FINANCING ACTIVITIES
Stock options exercised	4,897		17,284
Repayment of long-term debt	(112,973	)	(339,321	)
Repayment of CAAP loan	(83,884	)	(83,884	)
Repayment of lease liabilities	(265,088	)	(265,993	)
CASH USED IN FINANCING ACTIVITIES	(457,048	)	(671,914	)
Increase in cash and cash equivalents	3,511,834		13,061

Cash and cash equivalents at beginning of the year	1,857,195		1,844,134

Cash and cash equivalents at end of the year	5,369,029		1,857,195

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.

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

Issuer:

Gilles R. Gagnon, M.Sc., MBA

President & CEO

T: 780-421-4555

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