MONTREAL, March 02, 2020 (GLOBE NEWSWIRE) — Relevium Technologies Inc. (TSX.V:“RLV”, OTCQB:“RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”), is pleased to report second quarter results for fiscal year ending June 30, 2020.
Financial highlights for the second quarter of 2020The Company reported increased revenues for the reporting period. Revenues for the second quarter were $1,124,254 (compared to $1,006,501 in the comparable quarter of 2019).Gross margin for the second quarter increased by two percentage points to 57% (compared to 55% in the previous year). The increase was primarily due to changes in the product mix and sales channel.Total expenses for the second quarter decreased by $484,719 to $1,086,869 (compared to $1,571,558 in the second quarter of 2019).The company reported a net and comprehensive loss of 188,415 (compared to a net and comprehensive loss of 1,001,151 in the second quarter of 2019)Total assets as at December 31, 2019 were $8,280,869 (compared to $8,560,452 as at June 30, 2019). Current assets decreased by 444,178 to $1,351,838 in the current reporting period (compared to $1,796,016 in June 30, 2019). The decrease was primarily the result of a decrease in cash.Total liabilities increased by $569,105 to $4,081,249 in the reporting period (compared to $3,512,144 in June 30, 2019). The change was primarily the result of higher accounts payables and accrued liabilities.The company reported a working capital deficiency of $2,687,411, primarily due to the transfer of the long-term debt to current liabilities. The convertible debentures are due in December 2020. Working capital is defined as current assets – current liabilities.Financial highlights for the six-month period ended December 31, 2019The Company reported increased revenues for the reporting period. Revenues were reported as $2,141,940 (compared to $1,991,552 for the six-month period ended December 31, 2019).Gross margin for the period increased by one percentage points to 56% (compared to 55% in the previous year). The changes were primarily due to variations in the product mix and sales channel.Total expenses for the quarter decreased by $265,582 to $2,482,550 (compared to $2,748,132 in the previous reporting period).The company reported a net and comprehensive loss of $1,041,451 (compared to a net and comprehensive loss of $1,658,548 in the previous period).Business and Corporate Development HighlightsOn October 16, 2019, BCX executed an agreement to acquire 100% of the shares of Weedsense Inc., a late-stage applicant for a standard processing and medical sales license under the Cannabis Act, for an aggregate purchase price of $2,000,000 in cash or shares subject to certain milestones. As of the date of this MD&A the transaction remains pending for regulatory and compliance oversight.On October 25, 2019, the Company received a letter of intent (the “LOI”) to sell BGX E-Health LLC, a wholly-owned subsidiary, based in Orlando, Florida to NewScope Capital Corporation (“NewScope”), a British Columbia-based, privately held company with a goal of becoming an aggregator in the wellness and CBD space. Under the preliminary terms of the LOI, the Company will receive 20,000,000 shares of NewScope at $0.50 per share for a total value of $10,000,000.The resulting transaction would provide the Company with a majority interest (investment) in NewScope. As of the date of this MD&A, the debenture holders had approved the transaction, and the Company is looking forward to obtaining shareholder and TSX Venture approval.On November 8, 2019, the Company announced that it had executed a letter of intent to acquire a Montreal-based biopharma contract manufacturing company through its wholly owned subsidiary, BGX E-Health LLC. The parties have agreed to keep the vendor’s information confidential until such a time when the definitive agreement is executed. As per the proposed terms of the LOI, subject to customary due diligence, Board and TSX-Venture approval, the Company intends to close the transaction within 90 days from the date of the definitive agreement. An initial payment of $150,000 in shares and $100,000 in cash will be done at closing, with an earnout bonus of $2,500,000 in shares, vesting over a period of three reference years and based on specific revenue and EBITDA targets. As of the date of this MD&A, the Company is finalizing its due diligence and moving towards a definitive agreement in conjunction with the overall transaction with NewScope.OutlookThe most significant challenge for the company, in terms of its ability to execute its strategy, is its ability to  secure financing. In spite of the company’s stability in terms of revenues and improving expenses profile, the current context in the capital markets and the devaluation of the company’s shares pose a serious challenge for management.  The company remains focused on the successful execution of the spinout of BGX E-Health into New Scope Capital, which seeks to crystalize value and creates a strong and focused vertical in health and wellness consumer products. The company is also focused on securing the necessary financing and structure to execute on the business of Biocannabix.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 operation 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, markets dietary supplements, nutraceuticals, sports nutrition and cosmeceuticals primarily through its Bioganix® brand portfolio in the US and Europe. Relevium’s premium brands are sold at some of the world’s largest retailers including Walmart.com and Amazon.com.Biocannabix Health Corporation (BCX), based in Montreal, Quebec, is a biopharma nutraceutical Company focused on delivering pediatric endo-medicinal nutraceuticals for cannabinoid therapy.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 DirectorsRELEVIUM TECHNOLOGIES INC.
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