OTTAWA, Ontario--(BUSINESS WIRE)--Avivagen Inc. (TSXV:VIV) (“Avivagen”, the “Corporation”), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely enhances feed intake and supports immune function, thereby supporting general health and performance, today reported its audited financial results for the year ended October 31, 2022 and the implementation of a strategic plan to accelerate growth.

The Corporation reported that fiscal 2022 was a year that laid the groundwork to open new markets – both geographically and for different uses, all of which sets the stage for potential, significant sales to new customers, all the while continuing to get repeat and growing orders of OxC-beta™ Livestock from existing customers. The Corporation achieved many significant business and operational milestones during fiscal 2022.

Fiscal 2022 Business and Operational Highlights:

• Large, repeat purchase orders from a customer in southeast Asia
• New customers purchased product, including a first purchase by AB Vista for Brazil, the 3^rd largest feed market in the world
  • AB Vista is a wholly-owned subsidiary of Associated British Foods plc and has an exclusive agreement with Avivagen for the US, Brazil and Thailand
• Confirmation of powerful new use cases, including for dairy cows, resulting in more milk produced, more protein and fat (nutrition) and a lower somatic cell count
• New country, regulatory approval in the world’s largest feed market, China
• New country, regulatory approval in Vietnam, followed by a distribution agreement
• Publication in peer reviewed publications on the foundational real-world efficacy, safety and science of OxC-beta™ Livestock product
  • Disclosed as of mid-2022, Avivagen’s product has been used commercially in the form of OxC-beta™Livestock in various countries as a feed additive in approximately 16 million piglets, 94,000 sows, and 19.6 million poultry, and as a supplement for 12,000 dairy cows
• Cumulative financing of more than $8.5 million between equity and debt financings
• Strengthened intellectual property patents with new applications of OxC-beta™ LIvestock

Avivagen CEO, Kym Anthony, said, “With such incredible scientific and real-world underpinnings for the use and value of our product, we now feel we have the base with existing customers to define a clear way forward to accelerate growth rapidly. The board and management team have taken in feedback from various customers, taken into account inflationary and cost pressures and listened to shareholders and, as a result, we are implementing various initiatives to accelerate growth. As part of that plan, the board and I will immediately start searching for a successor CEO. The board and I remain deeply optimistic about the opportunity for Avivagen and its shareholders and we believe that the next CEO will have all the tools and relationships in place to expedite a rapid ramp in growth. We also expect to be making changes to the board of directors ahead of the next annual meeting of shareholders. We will provide more updates on these strategic initiatives as they unfold and expect multiple communications on the accelerated growth plan through the next few months.”

“It is our belief that these changes, combined with upcoming milestones, such as the anticipated complete submission to the FDA for a “No Objection Letter” for GRAS status, will provide a strong catalyst for Avivagen in 2023 and beyond, opening up previously inaccessible large and economically impactful markets for the company,” said Jamie Nickerson, President of Avivagen.

The Corporation reported revenues of $939,173 ($1,295,991 in the year ending October 31, 2021) and a comprehensive loss of $(6,066,206) for the year ended October 31, 2022. This compares to a comprehensive loss in the year ending October 31, 2021 of $(6,394,159). As at October 31, 2022, the Company reported total assets of $1,365,394 (current assets of $1,271,141), total liabilities of $7,349,313, and shareholders’ deficit of $(5,983,919).

The Corporation’s audited fiscal 2022 financial statements and accompanying MD&A are available on SEDAR.

About Avivagen

Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications. By unlocking an overlooked facet of βcarotene activity, a path has been opened to safely and economically support immune function, thereby promoting general health and performance in animals. Avivagen is a public corporation traded on the TSX Venture Exchange under the symbol VIV, and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.

About OxC-beta™ Technology and OxC-beta™ Livestock

Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about β-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. The product is currently available for sale in the United States, Philippines, Mexico, Taiwan, New Zealand, Thailand, Brazil, Australia, Vietnam and Malaysia.

Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.

Forward Looking Statements

This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions.

Statements set out in this news release relating to strategic plan and its expected benefits, the potential for new markets, the abilities and anticipated success of a new CEO, planned future communication, the future growth and prospects for Avivagen, the potential for additional and repeat orders for Avivagen’s products, future shipments and the possibility for OxC-beta™ Livestock to replace antibiotics in livestock feeds as growth promoters are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, the new strategic plan may not have the results anticipated, the search for the new CEO may not result in a new candidate for some time and anyone hired for the role may not have the successes that Avivagen currently hopes for, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics as growth promoters in livestock feeds due to many factors, many of which are outside of Avivagen’s control. Orders may be cancelled for many reasons outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Copyright © 2023 Avivagen Inc. OxC-beta™ is a trademark of Avivagen Inc.

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