Crescita Therapeutics Announces Extension of First Quarter 2020 Filings Due to COVID-19
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.
SOURCE Crescita Therapeutics Inc.
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