Zelira Therapeutics was hit with a A$30.7m impairment charge in the first half of the financial year, taking losses to A$34m.
The company, which is pursuing a listing with the US Food and Drug Administration (FDA) for its Hope autism product, said goodwill should be removed from its financial statement as its future revenue “relies on a number of long term and subjective assumptions”.
Revenue during the six months to December fell 29% to A$54,723 while losses deepened 941% as a result of the impairment charge. Net cash outflows were A$1.7m.
Zelira has raised US$11.85 of a planned US$35m to help fund clinical trials of Hope.
ECS Botanics
ECS Botanics has reported a net profit after tax of A$1.2 million in H1 FY24, a significant improvement on H1 FY23 when the firm reported a loss of $1.4m.
The result follows a record half in which trading revenue hit $11.3m, up 66% on H1 FY23.
The firm said it remains well funded with a cash balance of $2.6m as at December 31 2023, along with a NAB facility of $2m which remains undrawn.
Last week, ECS announced it had raised $4m from new and existing shareholders to help further increase its growing capacity and expand its vertically integrated business model.
Managing director Nan-Maree Schoerie said: “ECS is now seeing the benefits of our capital light-business model and our ability to effectively build scale into our operations.”
Little Green Pharma
Little Green Pharma has shipped its first batch of LGP-branded, high-THC Desert Flame flower products to Poland to be distributed by local partner Medezin.
The shipment comes more than three years after LGP began the approval process with the Polish health regulator.
The firm said Poland is currently serviced by fewer than 10 suppliers, predominantly from North America, with LGP being the first Australian company in market.
It added: “With a population of 38 million, an import-only supply regime, GP prescribing capability, no restrictions on the conditions treatable with cannabis, and a predicted compound annual growth rate of 16%, LGP regards Poland as a highly prospective new medicinal cannabis market in Europe alongside France and Italy.”
Ecofibre
Impairment charges of nearly $39m saw Ecofibre first half losses rise to almost $45.7m.
While earnings before interest and tax (EBITDA) narrowed from $8.6m to $5m, charges relating to goodwill ($27m), property ($8.7m) and equipment and inventory ($3m) saw total losses deepen.
Normalised EBITDA improved in both its Hemp Black and Ananda Health divisions, driven by a 34% reduction in operating costs.
Revenue in the six months to December declined 18% to $12.7m due to the temporary destocking of biomedical yarn by a key customer, weak trading in the US CBD market and the sale of its food and pet business, Ananda Food, to Elixinol.
As at January 31, the company had available cash of $5.9m in the core business and $3.8m in EOF Bio, an off-shoot which has exclusive rights to commercialise the intellectual property developed by Ecofibre and the University of Newcastle for the use of hemp extract in a number of conditions.
Ecofibre sold a 15% stake in EOF Bio for $5m in January.
Neurotech International
Neurotech International reported a loss of A$729,000 in the six months to December, a 79% improvement on the same period last financial year.
The clinical stage, pre-revenue biotech, which is trialling a cannabinoid drug for the treatment of autism spectrum disorder, was bolstered during the period by a $3.17m research and development grant.
Excluding the R&D grant, the firm reported a net operating deficit of $3.9m
The company had available cash of A$4.5m at the end of January.
Neurotech received Human Research Ethics Committee (HREC) approval earlier this month to extend a Phase I/II clinical trial of its NTI164 cannabinoid drug candidate by another 52 weeks.
Elixinol Wellness
Elixinol Wellness reported a narrowing of losses in FY23 as it forecast it will be earnings breakeven by mid-2024.
The company posted a loss after tax of $7.5m in the 12 months to December, a 29% improvement on FY22.
Earnings before interest and tax improved 46% to $4.6m.
Group revenue for the period jumped 17% to $8.3m, helped by a 66% rise from its Australian division from the first half, which, from August, included The Sustainable Nutrition Group.
Chief executive Ron Dufficy said: “We are pleased to report a significantly improved adjusted EBITDA for the eighth consecutive half year reporting period.
“With strong revenue growth and a continued focus on cost containment the company remains on track to achieve breakeven EBITDA by mid CY24.”
The company, which is close to completing the acquisition of Ananda Food from Ecofibre, is currently seeking to raise $3.16m through an entitlement offer.
Emyria
Emyria has reported a half-year loss of A$10.79 million, up 172% from $3.97m in H1 FY23. Revenue climbed 49% from $732k to $1.09m.
The firm ended the year with cash and cash equivalents of $1.97m, down from $2.72m on December 31, 2022.
In January, Emyria received a $2.53m government rebate for R&D work carried out in FY23 and a Radium Capital loan, secured against the refund, was repaid in full.
