TIDMPXS
RNS Number : 0513V
Provexis PLC
03 April 2023
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the UK Market Abuse Regulation.
With the publication of this announcement, this information is now
considered to be in the public domain.
3 April 2023
Provexis plc
('Provexis' or the 'Company')
Capital structure and funding update
Provexis, the business that develops, licenses and sells the
proprietary, scientifically-proven Fruitflow(R) heart-health
functional food ingredient, is pleased to provide an update on its
capital structure and funding. This update specifically refers to
the 'Capital structure and funding' section of the Company's
Interim Results announcement which was released on 30 December
2022.
Capital structure and funding update
The Company remains keen to minimise dilution to shareholders
and remains focussed on moving into profitability as its revenues
from Fruitflow increase.
DSM's existing and prospective pipeline of customers for
Fruitflow as a straight ingredient (not a DSM Premix or DSM
Market-Ready solution) were successfully transferred to become
direct customers of Provexis with effect from 1 January 2023. Sales
to these customers commenced in February 2023, when the first batch
of Fruitflow inventory was transferred from DSM's fulfilment centre
in The Netherlands to the Company's outsourced fulfilment centre in
the UK.
From the legal perspective of Fruitflow customers the Company is
deemed to be a new supplier and a considerable number of account
setup forms and extensive food safety and other questionnaires have
been required as part of the handover process.
In June 2022 Provexis and DSM announced a new long-term
partnership relating to the gut microbiome patent application which
the Company filed in June 2022. New products arising from this
collaboration are expected to be dealt with by DSM's Premix and
Market-Ready Solutions businesses.
In January 2023 the results of a successful gut microbiome human
study were published in a leading peer reviewed scientific journal,
and DSM issued a press release which received widespread coverage
in the trade media. These announcements have helped to generate
renewed interest from prospective customers for Fruitflow which are
part of truly global businesses.
The Company has contractually committed to purchase more than
EUR550k of Fruitflow inventory from DSM thus far, of which EUR348k
was delivered and paid for in full in the quarter ended 31 March
2023. The remainder of the inventory which the Company has
contractually committed to purchase from DSM is expected to be
delivered and paid for in April 2023.
From 1 January 2023 the Company has been looking to sell
Fruitflow to:
1. former DSM customers for Fruitflow;
2. DSM and its Premix and Market-Ready Solutions businesses;
3. new customers for Fruitflow as a straight ingredient; and
4. By-Health and its customers, through the Company's long-term
supply and distribution agreement for Fruitflow with By-Health.
The Company is now in direct contact with more than 50 actual
and prospective Fruitflow customers and it is seeking to ascertain
the likely demand from these actual and prospective customers for
the next 12 months and beyond, with particular regard to the best
before dates of DSM's remaining inventory.
The outsourced manufacturer of Fruitflow II SD (Fruitflow in
spray dried powder form, the primary form of Fruitflow which is
sold) is currently running some long-term stability tests on the
product, with a possible view to an extension to the product's
existing approved shelf life, and the results of these tests are
expected in the coming weeks.
The Company will be in a better position to judge how best to
manage its future inventory requirements (which can be met from
either: (i) DSM's existing Fruitflow inventory; or (ii) a new
Fruitflow production run) in the coming weeks once it has a clearer
picture of: (i) the likely demand from the Company's actual and
prospective Fruitflow customers for the next 12 months and beyond,
to include By-Health; and (ii) the outcome of the stability tests
on the existing Fruitflow inventory. The Company is therefore
currently seeking to negotiate an extension to the initial three
month inventory handover period with DSM. While these negotiations
progress the Company will receive incoming funds from further sales
of the Company's existing Fruitflow inventory.
The Company remains in negotiations with a third party which
might be able to hold inventory for the Company on a consignment
basis, with the Company potentially only paying for the inventory
when it is required for sale.
Based on the Company's current level of cash it continues to be
expected that the Group will need to raise further equity finance,
or potentially new loan finance, in the coming months. Considering
the success of previous fundraisings and the current performance of
the business, the Directors continue to have a reasonable
expectation of raising sufficient additional equity capital or new
loan finance.
A further announcement will be made by the Company at the
appropriate time.
For further information please contact:
Provexis plc Tel: 07490 391888
Dawson Buck, Chairman enquiries@provexis.com
Ian Ford, CEO
Allenby Capital Limited Tel: 020 3328 5656
Nick Naylor
Notes for editors
About Provexis plc
AIM-listed Provexis is focused on the development, licensing and
sales of its proprietary, scientifically-proven Fruitflow(R)
heart-health functional food ingredient.
Fruitflow is a natural, breakthrough ingredient that helps with
platelet aggregation. This helps promote normal blood flow and
circulation, which in turn benefits cardiovascular health.
Fruitflow helps the platelets to circulate freely and smoothly
throughout your blood, without sticking to one another or to the
blood vessels themselves. Freely flowing blood helps reduce stress
on your cardiovascular system.
Fruitflow is a highly concentrated form of bioactives which is
lycopene-free and contains over 30 known anti-platelet compounds.
Published clinical studies have shown that Fruitflow works to
maintain healthy blood flow in a similar way to 75mg aspirin but
with a milder and reversible action; Fruitflow has a similar
antiplatelet effect to a single dose of aspirin - but when taken
daily, it has none of aspirin's side effects.
The science behind Fruitflow has been validated by leading peer
review publications and regulatory authorities. Fruitflow is the
only natural antiplatelet to have a health claim approved by the
European Food Safety Authority, stating that 150mg of Fruitflow
'helps maintain normal platelet aggregation, which contributes to
healthy blood flow'.
Provexis entered into a long-term Alliance Agreement with DSM
Nutritional Products in 2010 to commercialise Fruitflow through
sales as an ingredient to brand owners in the food, beverage and
dietary supplement categories. More than 100 regional consumer
healthcare brands have now been launched by direct customers of
DSM, and a number of further regional brands have been launched
through DSM's distributor channels.
In June 2022 Provexis announced it had secured two new
agreements with DSM for Fruitflow, to replace the Alliance
Agreement: (i) a Transfer of Business agreement and (ii) a Premix
and Market-Ready Solutions supply agreement, both to take effect
from 1 January 2023.
DSM's existing and prospective pipeline customers for Fruitflow
as a straight ingredient have transferred to become direct
customers of Provexis WEF 1 January 2023, and Provexis took over
the outsourced supply chain / production process for Fruitflow at
that time. The customer transfer process from DSM to Provexis is
currently ongoing, and thus far it has seen a number of positive
interactions with customers for direct sales of Fruitflow by
Provexis in 2023 and beyond.
Fruitflow has a number of specific health benefits which have
been reflected in separate patent filings for the use of Fruitflow
in:
-- mitigating exercise-induced inflammation;
-- managing blood pressure;
-- protecting against the adverse effects of air pollution on
the body's cardiovascular system. Laboratory work has shown that
Fruitflow can reduce the platelet activation caused by airborne
particulate matter, such as that from diesel emissions, by
approximately one third; and
-- conferring health benefits in modulating the gut microbiome
of humans, to include a reduction in TMAO, following the completion
of a successful human study which is further detailed here
www.dsm.com/human-nutrition/en/talking-nutrition/press-releases/2023-01-20-new-study-reveals-dsms-fruitflow-activates-gut-heart.html
.
A new partnership was agreed with DSM in June 2022 relating to
the commercialisation of the gut microbiome patent, subject to
certain milestones which have been agreed between the parties.
In November 2021 Provexis entered into a long term supply and
distribution agreement for Fruitflow with By-Health Co., Ltd.
('By-Health'), a GBP4bn listed Chinese dietary supplement business,
to support the planned launch of some Fruitflow based products in
the Chinese market.
The planned launch is progressing well with potential sales
volumes remaining at a significant multiple of existing Fruitflow
sales.
By-Health has made a significant investment in eight separate
studies in China, at its sole expense, in support of the Fruitflow
based products which it plans to launch in China.
The five completed studies showed excellent results in use for
Fruitflow, and they provide strong evidence for its efficacy on
platelet functions. The Chinese regulatory system for functional
health food ingredients such as Fruitflow is governed by the State
Administration for Market Regulation (SAMR), China's top market
regulator, and it is based on a defined list of 27 permitted health
function claims which brand owners are permitted to use on product
labels.
By-Health is working on an extensive regulatory submission to
the SAMR for Fruitflow, seeking to establish a new permitted health
function claim for food ingredients such as Fruitflow that can
demonstrate an anti-platelet effect, addressing the aberrant blood
clots which can lead to heart attacks and strokes.
If By-Health is successful in obtaining a new permitted health
function claim it is currently expected that this would result in
some significant orders for Fruitflow, potentially at a multiple of
current total sales values.
Provexis sells a high quality dietary supplement product
containing Fruitflow and Omega-3 from its website
www.fruitflowplus.com on a mail order basis. The product is also
available to purchase from Amazon.co.uk and from Holland &
Barrett.
COVID-19
In September 2020 Fruitflow was recognised in a review article
by the Frontiers in Nutrition journal
www.frontiersin.org/articles/10.3389/fnut.2020.583080/full which
stated that nutraceuticals such as Fruitflow may serve as:
'A safe antiplatelet prophylactic treatment for those at high
risk of COVID-19 who may also be at increased risk of thrombotic
complications and an alternative to pharmacological compounds that
may cause greater risk of bleeding.'
Provexis was founded in 1999 and is headquartered in Reading,
Berkshire.
Provexis shares are traded on the AIM market of the London Stock
Exchange under the ticker symbol PXS.
For further information, please visit www.provexis.com and
www.fruitflowplus.com .
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