– Q1 2024 marked by significant advancement of R&D projects focused on avenanthramide Phase 1-2a clinical study and the processing of yeast beta glucan along with the building of pilot scale units for PGX Technology – Q1 2024 sales of $2,800,000 vs $3,500,000 in Q1 2023 – Announced approval by shareholders of merger of equals with Aeterna Zentaris to create a diversified biopharmaceutical company; expected to close in the second quarter of 2024, subject to the closing conditions EDMONTON, Alberta, May 29, 2024 (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 financial results and operational highlights for the first quarter ended March 31, 2024. "We are excited by the advancement of several key milestones related to new product and technology development. We are making progress on multiple fronts including the team at Montreal Heart Institute completing the first arm of the Phase 1 clinical study with avenanthramides and the team at Ceapro working to complete the scale-up of the PGX Technology at the Edmonton facility using fully defined yeast beta glucan. With the return of the re-ordering pattern from one major customer and the expected shared benefits that should result from the upcoming merger of equals with Aeterna Zentaris, we believe we are poised to significantly propel the Company into its next phase of growth and unlock value as a diversified biopharmaceutical company," stated Gilles Gagnon, M.Sc., MBA, President and CEO of Ceapro. Corporate and Operational Highlights Pipeline Development Focus maintained on the development of avenanthramides and the scale-up of the PGX Technology Avenanthramides: Clinical Significantly advanced the Phase 1 safety and tolerability study with healthy volunteers at Montreal Heart Institute (MHI): The first arm of the single ascending dose (SAD) phase of the study has been completed. 6 groups of 8 subjects per group received doses ranging from 30mg to 960mg per group per day. No significant adverse reactions have been observed during this SAD phase. Based on full report to be completed shortly, members of the Data Safety Monitoring Board will decide on conducting the next step of the Phase 1 study consisting of three additional groups of 8 subjects per group where each subject will receive multiple ascending dose (MAD). The Company expects to initiate the MAD arm during the summer 2024. This is the first-in-human clinical study to assess safety, tolerability, and pharmacokinetics of single and multiple ascending oral doses of avenanthramides. Formulation, Stability Studies and Analytics Additional GMP clinical batches of the selected 30mg and 240mg pills formulation of the drug product were manufactured by Corealis Inc. GMP Manufacturing Services ("Corealis"). Stability studies for the pills are ongoing. Bioassays for the detection of avenanthramides in the blood and urine successfully developed and standardized. Ceapro is the owner of these bioassays currently used for the pharmacokinetics profile of avenanthramides. Yeast Beta Glucan (YBG) Specifications have been standardized and the product is being used for the PGX scale-up projects in Edmonton and Austria. Technology: Pressurized Gas eXpanded Technology (PGX): Edmonton Main Facility – PGX Scale-Up 50 Liters Vessel: Construction and installation were completed during Q1 2024. Several trial runs of yeast beta glucan have been performed as part of the last commissioning "fine tuning" phase. Given that the Edmonton site license is for natural products, yeast beta glucan produced from this facility will be offered as a nutraceutical. Subject to approval by Health Canada, this product could be launched by end of 2024. Natex Facility, Austria – PGX Scale-Up 100 Liters Vessel: The project is on schedule. Commissioning is expected to be completed by end of Q3 2024. Corporate: Announced on March 12, 2024 approval of merger with Aeterna Zentaris by Securityholders at special meeting. Received on March 28, 2024 the final court approval for merger with AeternaZentaris to create a diversified biopharmaceutical company; expected to close in the second quarter of 2024; subject to the closing conditions. Financial Highlights for the First Quarter Ended March 31, 2024 Total sales of $2,800,000 for the first quarter of 2024 compared to $3,500,000 for the comparative quarter in 2023. The decrease compared to last year was primarily due to a significant decrease in product sales of oat oil. One major customer is gradually resuming ordering pattern with flagship product, avenanthramides. Gross margin of 44% in Q1 2024 compared to 46% in Q1 2023 mostly due to higher costs to produce avenanthramides which represented most of the sales during Q1 2024. Net loss of $1,900,000 in Q1 2024 compared to a net loss of $385,000 in Q1 2023. Loss was incurred due to lower sales, increased R&D investments as well as non-recurrent increased G&A expenses mostly due to professional fees incurred for the expected merger with Aeterna Zentaris. Positive working capital balance of $10,219,022 as of March 31, 2024. "As we expect renewed growth with our active ingredients revenue generating base business and subject to the closing and successful integration of the merger with Aeterna Zentaris, the Company expects to complete prioritized projects using cash on hand while continuing to assess different market initiatives to bring new business and unlock value," concluded Mr. Gagnon.   CEAPRO INC. Condensed Interim Consolidated Balance Sheets Unaudited                 March 31,   December 31,       2024   2023       $   $   ASSETS           Current Assets           Cash   4,746,901   8,843,742   Trade receivables   1,677,934   167,295   Other receivables   204,911   216,763   Inventories (note 3)   4,778,701   5,308,987   Prepaid expenses and deposits   485,826   310,191   Total Current Assets   11,894,273   14,846,978   Non-Current Assets           Restricted cash   10,000   10,000   Investment tax credits receivable   984,200   984,200   Deposits   74,369   74,369   Licences (note 4)   8,884   9,625   Property and equipment (note 5)   15,783,093   15,421,884   Deferred tax assets   654,850   98,778   Total Non-Current Assets   17,515,396   16,598,856   TOTAL ASSETS   29,409,669   31,445,834   LIABILITIES AND EQUITY