– Quarter marked by reinvigorated focus on purposefully built
strategic business units leveraging science-driven cannabinoid research
to address areas of significant unmet needs and access growing markets –
– Robust business development initiative to build
biopharmaceuticals pipeline underway with expectation to announce at
least one in-licensing agreement before year end –
– Multiple expected near-term value driving milestones –
Applied BioSciences Corp.
(OTCQB: APPB) (“Applied” or the “Company”), a vertically integrated
company focused on the development of science-driven cannabinoid
biopharmaceuticals and the production of high-quality CBD products,
today announced its financial results for the first quarter Fiscal Year
2020 ended June 30, 2019. The Company also provided an update on its
corporate and clinical progress.
Q1 FY2020 Operational Highlights
- Renewed strategy focused on leveraging endocannabinoid system to
develop high-value products across three separate business units,
including:
-
Biopharmaceuticals: goal to develop novel therapeutics
to treat serious diseases across a range of therapeutic areas, including
metabolic, peripheral neuropathy and progressive lung disease
-
CBD Products: multiple brands offering high-quality CBD products to the highest regulatory standards;
- Bolstered leadership team with highly qualified individuals
including Raymond W. Urbanski MD, PhD, as Chief Executive Officer,
former business unit Chief Medical Officer at Pfizer Inc. and
well-established industry-leading expert with over 20 years of
experience in clinical development, research and pharmaceutical industry
expertise across oncology, cardiology, endocrinology, and immunology;
- Appointed Martin Schroeder to the Scientific Advisory Board and as
President of Applied BioPharma. Mr. Schroeder has over 30 years of
experience in the pharmaceutical and biotech industries and has helped
many biotech and pharmaceutical companies conduct search and evaluation
of compounds and molecules;
- Launched multiple new products and expanded into the Beverage and
Health / Wellness category with Remedi Spa and Remedi Beverage and Shot;
- Commenced discussions regarding proposed scientific trials with two
leading Universities specializing in Veterinary Medicine; and
- Launched robust business development initiative to build biopharmaceuticals pipeline.
“Over the past quarter, our team has made diligent efforts to
re-focus our corporate and clinical strategy and position ourselves to
successfully execute on those goals. This is a transformative time in
the Company’s history, and I believe that with the multiple near-term
milestones ahead, Applied has the potential to drive value for all
stakeholders and truly impact areas of significant unmet need,â€
commented Dr. Raymond Urbanski, Chief Executive Officer. “Discussions
remain underway and we continue to make progress on our plans to build
out a biopharmaceuticals pipeline through robust business development
initiatives. We expect to announce at least one in-licensing agreement
before the end the year. Additionally, we continue to be opportunistic
as we look to enhance the profile of Applied BioSciences and position
ourselves to uplist to a National Exchange. We remain steadfast on
building a solid foundation from which we can launch future expansion
and believe, with the combination of potential non-dilutive funding and
accessing capital through strategic investments, we have the opportunity
to build significant momentum and unlock the full potential of Applied
Biosciences.â€
Applied BioPharma
The Applied BioPharma business unit is focused on the development and
commercialization of novel therapeutics to treat serious diseases by
leveraging an industry leading pipeline of endocannabinoid
system-targeted drug candidates.
The Company is actively seeking in-license opportunities with the
goal of developing an industry leading pipeline of endocannabinoid
system-targeted drug candidates that address significant unmet needs
across a wide range of therapeutic areas. The Applied management team
expects to announce at least one in-licensing agreement before year end.
Applied Products
The Applied Products business unit currently consists of eight
different brands of hemp-derived, THC-free, pharmaceutical grade CBD
isolates and distribution products, all of which ship to the majority of
U.S., as well as to multiple non-US countries. The Company’s portfolio
currently includes consumer, animal health, women’s health and sports
medicine products.
Applied Products operates under a differentiated approach to quality
and regulatory practices within the industry, which it believes
well-positions them to be leaders in the market and access the
significant opportunity for revenue generation. All CBD products utilize
the most proven and effective production methods to ensure the highest
quality output. The Company’s Full Spectrum products are made using CO2
Extraction, which allows for the proper retention of cannabinoids and
terpenes vs a distillate, and a winterization process. Applied’s THC
Free products are CBD Isolate infused. This isolation process leaves
behind pure pharmaceutical grade CBD only, ensuring the highest quality
is achieved. Additionally, the Company’s Nano CBD Isolate products use a
specialized Nano-Particulizer, a process which creates a pure
nano-molecule.
Trace Analytics, Inc.
Trace Analytics Inc., a majority owned subsidiary of Applied, is a
leading cannabis science and technology company with significant
footprints in lab testing, research and development and licensing. Trace
Analytics was started by a group of scientists who specialized in
analytical chemistry, genetics and molecular biology. The focus of the
team is to ensure compliance with public safety standards and end user
safety. Trace Analytics is in the process of expanding throughout the
United States, and globally. With the goal of helping the rest of the
world adopt “best practices” in cannabis and hemp testing, the Company
also provides expert consulting services to legislators and regulators
in many countries, states and municipalities around the world.
The Company is actively establishing a global medical and consumer
platform and multiple brands through creating a platform to partner and
invest in various segments in the consumer industry and establish key
exclusive strategic alliances which serve to accomplish the task of
becoming the market leader. For more information, please visit: http://traceanalytics.com.
Upcoming Milestones Expected to Drive Value
- In-license product candidates to build robust pipeline for the Applied BioPharma division;
- Explore strategic options for non-dilutive funding with Trace Analytics;
- Successfully execute overall strategy of the Company and Business Development efforts;
- Engage with key stakeholders in the investment community and execute on the robust effort to raise awareness of the Company; and
- Uplist to a National Exchange.
Summary of Financial Results for First Quarter FY2020 Ended June 30, 2019
For the quarter ended June 30, 2019, the Company reported net loss of
approximately $423,897 or net loss per diluted share of $0.03, compared
to a net loss of approximately $395,501 or a net loss per diluted share
of $0.04, for the quarter ended June 30, 2018.
During the three months ended June 30, 2019, revenue from Applied
BioSciences’ CBD product lines was $85,740 as compared to $10,434 for
the three months ended June 30, 2018. The increase reflects higher sales
across all of the Company’s CBD brand product lines, most notably in
its topical products, combined with expansion into sales of bulk hemp
seed and raw CBD. Service revenue resulting from the Company’s lab
testing is attributed solely to the acquisition of Trace Analytics in
January 2019, and totaled $125,717 for the three months ended June 30,
2019.
General and administrative expenses increased $236,903 to $444,049
for the three months ended June 30, 2019 as compared to $207,146 for the
three months ended June 30, 2018. The increase can be attributed to the
acquisition of Trace Analytics, with general and administrative
expenses for the remainder of the Company essentially flat compared to
the three months ended June 30, 2018.
The Company ended the quarter with $37,940 in cash and cash
equivalents. The Company is actively evaluating opportunities to fund
continued growth in its products and services revenue along with planned
business development activities for Applied BioPharma, and anticipates
closing a financing by the end of second quarter Fiscal Year 2020.
About Applied BioSciences Corp.
Applied BioSciences is a vertically integrated company focused on the
development of science-driven cannabinoid therapeutics /
biopharmaceuticals and delivering high-quality CBD products as well as
state-of-the-art testing and analytics capabilities to our customers.
Applied BioSciences is focused on, testing and analytics, consumer
and OTC brands, and partnership opportunities in the medical, health and
wellness, and nutraceuticals.
The Company has several strategic partnerships currently in place and
is actively pursuing additional partnerships and other strategic growth
opportunities. For more information, visit the Company’s website.
Investors and Media:
[email protected]
(833) 475-8247
