LAVAL, QC, April 28, 2020 /PRNewswire/ - Crescita
Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF) ("Crescita" or the
"Company") today announced that pursuant to the exemption provided
in Ontario Instrument 51-502 - Temporary Exemption from Certain
Corporate Finance Requirements (the "Ontario Instrument") of
the Ontario Securities Commission, it will postpone the filing of
its interim consolidated financial statements and
Management's Discussion & Analysis for the three-month period
ended March 31, 2020 (together the
"Interim Documents"), due to logistical issues arising from remote
working arrangements of key personnel as a result of the COVID-19
pandemic.
According to the Ontario Instrument, during the period from
March 23, 2020, to June 1, 2020, a person or company required to
make certain filings has an additional 45 days from the deadline
otherwise applicable to make the filing. The Company expects
to file its Interim Documents on May 27,
2020.
In the meantime, the Company confirms that its management and
other insiders are subject to an insider trading blackout policy
that reflects the principles in section 9 of National Policy
11-207: Failure-to-File Cease Trade Orders and Revocations in
Multiple Jurisdictions, and will be in a black-out period until
the end of the second trading day after the Interim Documents have
been filed and first quarter 2020 results have been disclosed by
way of a press release.
As required by the Ontario Instrument, the Company has provided
an update on material business developments since March 17, 2020, the date of its last annual
financial reports, certain of which have already been disclosed in
a press release issued on March 24,
2020, when the Company announced its measures in response to
the pandemic:
- In April, the Company applied for a Natural Health Number
("NPN") from Health Canada allowing it to produce hand sanitizer.
The Company expects to start manufacturing the hand sanitizer in
May.
- Effective March 24, the Company
temporarily closed its office and production facility in
Laval, Québec, in accordance with
the government-mandated shut-down of all non-essential
businesses.
- The facility closure resulted in temporary layoffs affecting
most production and office personnel, with certain employees deemed
critical to maintaining basic services during the shut-down,
working remotely with reduced hours.
- The Company implemented the following initiatives to conserve
cash and help maintain its financial flexibility through the
uncertainties and economic pressures posed by the pandemic:
-
- Temporary base salary or fee reductions ranging between 25% and
40% for the members of the executive team, including the CEO and
CFO, as well as all members of the Company's Board of
Directors
- The termination of its Automatic Share Purchase Plan ("ASPP"),
effective March 24, 2020, in
connection with the Company's current normal course issuer bid
("NCIB");
- The Company also provided a business update stating that:
(i) it has seen substantially decreased Canadian product
sales due to mandated closures of Canadian aesthetic and medical
aesthetic clients; (ii) the Company's international export
business was also affected in countries such as Malaysia, South
Korea and China; and
(iii) it anticipates that royalties from international sales
of its products will be adversely affected by lower demand and
border restrictions.
About Crescita
Therapeutics Inc.
Crescita (TSX: CTX and
OTC US: CRRTF) is a growth-oriented, innovation-driven
Canadian commercial dermatology company with in-house R&D and
manufacturing capabilities. The Company offers a portfolio of
non-prescription skincare products and early to commercial stage
prescription drug products and owns multiple proprietary drug
delivery platforms that support the development of patented
formulations that can facilitate the delivery of active ingredients
into or through the skin.
Supported by a sales force covering all of Canada and executing its Business to Business
to Consumer marketing approach, Crescita sells its non-prescription
skincare products domestically through spas, medispas, and medical
clinics, as well as internationally, through distributors and an
e-commerce platform.
Crescita's predecessor company, Nuvo Research Inc., developed a
prescription product called Pliaglis®, that utilizes
the Company's proprietary phase-changing topical cream Peel
technology, a part of the DuraPeel™ family, which are
self-occluding, film-forming cream/gel formulations, that provide
extended release delivery of the active ingredients to the site of
application. Pliaglis is a topical local anaesthetic cream that
provides safe and effective local dermal analgesia on intact skin
prior to superficial dermatological procedures. The product is
currently approved in over 25 different countries and sold by
commercial partners in the U.S., Italy and Brazil, and sold in Canada by the Company.
Crescita's expertise in product formulation and development can
be leveraged in combination with its patented transdermal delivery
technologies to develop and manufacture creams, liquids, gels
ointments and serums under its contract development and
manufacturing organization ("CDMO") infrastructure. The Company
operates out of a 50,000-square-foot facility located in
Laval, Québec, which produces a
significant part of its non-prescription skincare products, such as
LDR, Pro-Derm and Alyria. Formulations manufactured by or for
Crescita include cosmetics, natural health products ("NHP") and
products with Drug Identification Numbers ("DIN"). For additional
information, please visit www.crescitatherapeutics.com.
Forward-Looking Statements
This press release
contains "forward-looking information" as defined under Canadian
securities laws (collectively, "forward-looking statements"). The
words "plans", "expects", "does not expect", "goals", "seek",
"strategy", "future", "estimates", "intends", "anticipates", "does
not anticipate", "projected", "believes" or variations of such
words and phrases or statements to the effect that certain actions,
events or results "may", "will", "could", "would", "should",
"might", "likely", "occur", "be achieved" or "continue" and similar
expressions identify forward-looking statements. In addition, any
statements that refer to expectations, intentions, projections or
other characterizations of future events or circumstances contain
forward-looking statements.
Forward-looking statements are not historical facts but instead
represent management's expectations, estimates, projections and
assumptions regarding future events or circumstances. Such
forward-looking statements are qualified in their entirety by the
inherent risks, uncertainties and changes in circumstances
surrounding future expectations which are difficult to predict and
many of which are beyond the control of the Company.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable by
management of the Company as of the date of this press release, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Material factors and
assumptions used to develop the forward-looking statements, and
material risk factors that could cause actual results to differ
materially from the forward-looking statements, include but are not
limited to changes in the business or affairs of Crescita; the
ability of Crescita's licensees to successfully market its
products; competitive factors in the industries in which Crescita
operates; relationships with customers, suppliers and licensees;
changes in legal and regulatory requirements; foreign exchange and
interest rates; prevailing economic conditions; and other factors,
many of which are beyond the control of Crescita.
Additional factors that could cause Crescita's actual results
and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, the risk
factors included in Crescita's most recent Annual Information Form
under the heading "Risks Factors", and as described from time to
time in the reports and disclosure documents filed by Crescita with
Canadian securities regulatory authorities and commissions. These
and other factors should be considered carefully, and readers
should not place undue reliance on Crescita's forward-looking
statements when making decisions, as forward-looking statements
involve significant risks and uncertainties. Forward-looking
statements should not be read as guarantees of future performance
or results and will not necessarily be accurate indications of
whether or not the times at or by which such performance or results
will be achieved.
All forward-looking statements are based only on information
currently available to the Company and are made as of the date of
this press release. Except as expressly required by applicable
Canadian securities law, the Company assumes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise. All
forward-looking statements in this press release are qualified by
these cautionary statements.
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SOURCE Crescita Therapeutics Inc.
