Scandinavian ChemoTech AB (publ) Interim report Q1 January – March 2020 Executive Summary of the first quarter
First quarter
- Net sales amounted to kSEK 90 (20)
- Order intake amounted to kSEK 631
- The order book amounted to kSEK 1,125 at the end of the quarter
- Profit before tax amounted to kSEK -3,464 (-2,579)
- Earnings per share amounted to SEK -1.02 (-1.02)
- Cash flow from operating activities totaled to kSEK -4,120 (- 3,711)
Important events during the first quarter
- Signed a loan agreement that secures financing of MSEK 4 from shareholders and investors
- Signed a collaboration agreement for clini-cal validation and distribution with Femaug Logistics and Services Ltd (FLS) in Nigeria
- New Finance manager took office
- Signed a service agreement with HealthCa-re Global Enterprises Ltd. (HCG) in India
- Updated forecasts due to COVID-19
Important events after the end of the period
- Carried out a new share issue with prefe-rential rights for the company’s existing shareholders. The rights issue was oversub-scribed and the oversubscription option was exercised. More than MSEK 13 was ad-ded to the company before issuance costs
- Signed a distribution agreement with and received order from Lee Imaging Ukraine LLC
- Election of new Board of Directors
SUMMARY
ChemoTech had a successful beginning of 2020 with orders from Nigeria and increasing sales of treatment kits in India. The order intake totaled kSEK 631 and net sales amounted to kSEK 90 (20) for the period. The loss before taxes amounted to kSEK -3,464 (-2,579) and earnings per share totaled SEK -1.02 (-1.02).
Several important collaboration, service and distribution agreements were concluded during the first quarter, most notably an agreement including both commercial validation and clinical development with the HCG Group, which operates more than 20 cancer hospitals in India. Furthermore, a collabo-ration agreement was concluded with Femaug Logistics and Services Ltd (FLS) in Nigeria regarding clinical validation and distribution.
In the Animal Care business area, the new veterinary medicine product VetIQure™ for Dynamic Electroporation on animals showed promising results in its first clinical evaluation, which paves the way for future commercialization.
The COVID-19 situation impacted the operations, and thus the result, by forcing ChemoTech to cancel marketing activities and postpone deliveries and training of local doctors on how to perform electro-poration with the IQwave™ system. In response, a savings package was adopted, strengthening cash flow. Cash flow from operating activities amounted to kSEK -4,120 (-3,711).
An MSEK 4 loan agreement was signed in January to ensure the continuity of financing. The CE mar-king process for IQwave™ proceeded, but was delayed by restricted opportunities for dialogue with the company’s Notified Body; due to the one-year postponement of MDR, Chemotech will continue to CE mark IQwave™ in accordance with MDD.
After the end of the period, a new share issue with preferential rights for existing shareholders was carried out; the issue was over-subscribed and provided the company more than MSEK 13 before issuance costs. Chemotech also entered its first European distribution agreement, which included an initial order, with Lee Imaging Ukraine LLC.
For further information please contact:
Mohan Frick, Co-Founder and CEO
+46 (0)10-218 93 00
Certified Adviser: Västra Hamnen Corporate Finance AB, Tel: +46 40 200 250, E-mail: ca@vhcorp.se
Scandinavian ChemoTech AB (publ)
ChemoTech is a Swedish medical technology company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, tumour specific electroporation, available for treatment of both for humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where tumour specific electroporation can be a solution. Therefore, the company continuously evaluates new opportunities and areas of application for the technology. ChemoTech's shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Västra Hamnen Corporate Finance AB is the company's Certified Adviser. Read more at: www.chemotech.se.
The full version of the Interim Q1 report was published in Swedish May 28th 2020 at 08.30.