MONTREAL, Nov. 30, 2018 (GLOBE NEWSWIRE) -- Relevium Technologies Inc. (TSX.V:“RLV”, OTCQB:“RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”), is pleased to provide a corporate update and summarized discussion on the results for its first quarter.
Cannakids License for Canada
Subsequent to the announcement made on October 16, 2018 on the Company’s letter of intent regarding CK Properties and its intellectual property including the Cannakids brand of pediatric medical cannabinoid formulations, the Company is please to announce it has received conditional approval by the TSX Venture exchange for the Canadian Licensing portion of the transaction. The Company is now moving towards a definitive agreement and will seek final approval from the TSX Venture exchange.
Summarized Results for the fiscal year ended June 30, 2018
During the first quarter ended September 30, 2018, the Company’s topline revenues were impacted by major changes in Amazon’s Algorithm, which affected overall rankings and PPC spending for all sellers. These changes to the A9 algorithm continue to take place affecting marketplace dynamics throughout the first quarter. As at September 30, 2018, BGX offered 52 dietary supplement products in its online catalogue, an increase of 14 new products that were launched during the reporting period.
During the three months ended September 30, 2018 the company reported $985,051 in revenues ($1,152,944 in 2017) from its Bioganix® brand with a gross profit margin of 55% or $538,701. The decrease were the direct results of changes in the A9 algorithm and market dynamics in the amazon marketplace, including decreased demand in weight management products that were trending in 2017.
Total assets for the reporting period decreased from $8,575,302 as at June 30, 2018 to $7,659,192 as at September 30, 2018, while total liabilities decreased from $3,468,499 as at June 30, 2018 to 3,209,411 as at September 30, 2018.
During the reporting period BGX test launched the Bioganix® Gold Series, which is offered exclusively to Walmart shoppers. The initial test included three products in the weight management and digestive health categories. BGX’s has identified and will launch 30 exclusive nutraceutical products under its Gold brand in November of this year and expects this new revenue stream to be active and accretive during this fiscal year.
On September 20, 2018 BGX launched three products into Amazon’s UK platform through a sponsored program to reach European customers and plant to roll-out the balance of its 52 SKU product line over the fiscal year. Subsequent to this reporting period, two of the three products had achieved excellent rankings and revenues were on their way up. Management believes that the investment into the UK and European expansion will become a major contributor to the company’s overall growth in top line and profitability.
Bioganix® is currently not sold in Canada and the company is applying to the Natural and Non-prescription Health Products Directorate (NNHPD) to seek approval and being establishing the brand in Canada this fiscal year.
“Given that the Company’s revenues stream is primarily driven by its Amazon store and the changes made this year in the platform have provided some challenges to sales velocity. We gave been working diligently to adjust to these changes and to ensure a more diversified revenue stream for the company. We expect to see the results of these adjustments during the upcoming quarter. as the company prepares to launch LeefyLyfe® and continues to launch new products into Walmart and Amazon.UK” stated Aurelio Useche, CEO.
About Relevium Technologies
Relevium is a publicly-traded company that operates in the health and wellness industry, including legal cannabis, with a primary focus on online distribution. The principal business of the Company is the identification, evaluation, acquisition and operations of brands and businesses in the Health and Wellness markets and medical cannabis. The Company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness consumer products.
Relevium operates through two wholly-owned subsidiaries:
BGX E-Health LLC (BGX): Based in Orlando, Florida, BGX markets dietary supplements, nutraceuticals, sports nutrition and cosmeceuticals primarily through its Bioganix® brand portfolio in the US and Europe. Relevium’s brands such as Bioganix® are sold at some of the world’s largest retailers including such as Walmart.com and Amazon.com.
The Company’s strategy for growing its brands includes expanding its product offering, adding new distribution channels and developing partnerships that add value through exclusive ingredients. BGX is currently testing a complete line of dietary supplements derived from Cannabis with an initial focus on hemp derived, whole plant organic extract rich in CBD (cannabidiol). The product line will be marketed through its brand LeefyLyfe® and will be sold first in Europe and then North America. The Company uses cannabinoids and ingredients that have achieved GRAS status (generally accepted as safe) to create brands that are sold via wholesale channels, retail channels and online distribution.
Biocannabix Health Corporation (BCX): Based in Montreal, Quebec, BCX is an entrepreneurial venture to establish a vertically integrated medical cannabis company in the Nutraceutical space. Located in the city of Saint Laurent, the Company is in the process of licensing and retrofitting a facility that will host a genetically focused cannabis growth, extraction, formulation, research and development and encapsulation of proprietary Nutraceutical and Medical products.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, including the timing and completion of the proposed acquisitions, are forward-looking statements and contain forward-looking information. Generally, forward- looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including the assumptions that the Company will be able to apply for and ultimately obtain an ACMPR licence, the proposed business of Biocannabix will develop as anticipated, that the Company will raise sufficient funds to develop the Biocannabix business, and that the Company will obtain all requisite regulatory approvals. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Important factors that may cause actual results to vary, include, without limitation, the risk that the proposed business developments may not occur as planned; the timing and receipt of requisite approvals and failure to raise sufficient funds.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
On Behalf of the Board of Directors
RELEVIUM TECHNOLOGIES INC.
Aurelio Useche
President and CEO
For more information about this press release:
Tel: +1.888.528.8687
RELEVIUM TECHNOLOGIES INC
Email: investors@releviumcorp.com
Website: www.releviumtechnologies.com
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