Advitech Inc. ("Advitech" or the "Corporation") (TSX Venture Exchange: AVI) today announces the financial results for the first quarter ended March 31, 2009.
FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2009 AND CASH FLOWS
· Revenues amounted to $186,379 for the first quarter ended March 31, 2009, compared to $77,298 for the same quarter in 2008, an increase of $109,081 or 141%.
· The net loss amounted to $355,847 for the first quarter ended March 31, 2009, compared to $442,920 for the quarter ended March 31, 2008, a decrease of $87,073 or 19.7%.
· As at March 31, 2009, the Corporation had a cash position of $104,502. Operating activities accounted for $251,547 in cash decrease during the first quarter of 2009, represented by a net loss adjusted for items not affecting cash of $304,267, and a decrease in working capital requirements of $52,720, mainly due to a decrease in the stocks. Cash used in investment activities amounted to $5,398 most of which was related to investments in intellectual property protection. Moreover, the Corporation generated $83,223 in cash from financing activities during the first quarter of 2009. An amount of $182,906 was drawn against the line of credit, while an amount of $70,490 of financing expenses was incurred to complete the private placement with AgeChem Venture Fund L.P. A total of $29,193 was used for repayments on the bank loan and on capital leases.
· The private placement with AgeChem Venture Fund L.P. had no effect on cash during the first quarter of 2009 since the proceeds of this placement were held under escrow until April 17, 2009, at which date all conditions required for disbursement have been satisfied.
"Following its recapitalization in April 2009, Advitech has begun to put in place its strategic plan adopted at the end of 2008" commented Renaud Beauchesne, Executive Chairman at Advitech. Mr. Beauchesne added, "We have strengthened our bases and have organized the growth of the Corporation. In addition to the forecasted organic growth of Advitech's activities, we will put in the next coming months a particular emphasis on the Corporation's development by searching for opportunities for business combination".
FIRST QUARTER 2009 HIGHLIGHTS AND SUBSEQUENT EVENTS
· In January 2009, execution of an agreement with Purity Life Health Products, a Sunopta division, for the distribution of Dermylex® in Canada.
· Completion with AgeChem Venture Fund L.P., on March 12, 2009,of a $1,000,000 private placement of 50,000,000 units at a price of $0.02 per unit. Each unit issued as part of the private placement consists of one common share in the share capital of Advitech and of one common share purchase warrant. Each warrant will entitle its holder to purchase one common share at a price of $0.05 per share for a period of one year following the date of issuance of the warrants, and, thereafter, at a price of $0.10 per share until the fifth anniversary of the date of issuance of the warrants. AgeChem Venture Fund L.P. now directly holds 25.51% of Advitech's outstanding common shares.
· Conversion on April 17, 2009 of 98.4% of the issued and outstanding debentures of Advitech, together with accrued interest thereon, which represented an aggregate amount of $2,091,710, into 104,585,485 common shares at a deemed price of $0.02 per share. This conversion represents for the Corporation annual interest savings of about $240,000.
ABOUT ADVITECH INC. www.advitech.com:
Advitech is a health sciences and technology company with a mission to discover and commercialize proprietary and evidence-based natural health products. Effective and safe, these products play a role in the prevention of immune-mediated inflammatory disorders, such as psoriasis and inflammatory bowel disease. Advitech produces Dermylex®for the treatment of mild-to-moderate psoriasis.
Advitech has initiated an innovative wound healing research program to develop new applications for both its XP-828L and IM technological platforms.
This press release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.