Avecho Biotechnology saw revenue from ordinary activities fall 41% to A$446k in the half year to June 30, 2023 while losses climbed 174% to $2.13m.

Research and development tax incentive and other income increased by 32% to $403k while expenses from continuing operations increased by 74% to $2.85m. 

The company said this was “largely due” to higher research and development costs of $1.11m and administrative expenses of $1.73m.

It said the increase in R&D activities came as the company moved into a phase III clinical trial designed to test its proprietary CBD soft-gel capsule for the treatment of insomnia during the period.

As at June 30, 2023, the consolidated entity held $2.87m in cash and cash equivalents, up from $1.47m at the end of December 2022.

Last month, Avecho raised $6m through a share placement, taking the total generated through its recent round of funding to $8m. The firm launched the capital raise in April, and initially received $2m out of a targeted $11m.

The funds will be used to underpin the insomnia trial, which will compare nightly CBD doses of 75mg and 150mg with a placebo.  

Wellnex Life

George Karafotias

Wellnex Life increased sales to A$27.9 million in FY23, its second consecutive year of growth above 50%. The firm’s EBITDA loss was in line with FY22 at $6.8m while it held total assets of $15m as at June 30, 2023.

CEO George Karafotias said: “FY23 has been a year of investment growth across the whole business and has set the foundations for strong financial performance and growth in FY24 and beyond. 

“Our primary focus… is to grow gross margin while maintaining operational expenses at current levels to drive Wellnex to profitability during FY24.” 

In May, Wellnex entered into a binding agreement to acquire topical pain relief brand Pain Away Australia for $22m. At the time, Karafotias described the move as “perfectly aligned” to the firm’s medicinal cannabis strategy and focus on pain relief.

The deal is expected to complete this month.

Zelira Therapeutics

Zelira Therapeutics has reported narrowed losses after tax for the year ended June 30, 2023 of A$6.27 million, a near 50% improvement on FY22’s loss of $12.41m.

The firm attributed the losses to research and development activities, employee and administration costs. Net cash outflow from operating activities was $7.25m, down 23% on FY22 ($9.43m).

In March, Zelira raised $1.77m from US-based investors via a placement. The funds provided additional working capital for the firm’s ‘multiple shots on goal’ strategy to progress its proprietary formulas through formal US Food and Drug Adminstration clinical trials.

The company ended the financial year with cash and cash equivalents of $146k, down from $2.75m at the end of FY22.


Emyria has secured A$2 million in firm bids from new and existing sophisticated investors for a placement and announced a circa $3.1m non-renounceable entitlement offer.

Funds will be used to support the firm’s mental healthcare strategy, particularly in new drug development and addressing the needs of Australians impacted by severe PTSD.

It told the ASX: “Our near-term focus is on leveraging our multidisciplinary team and fit-for-purpose facilities to deliver MDMA-assisted therapy, a modality currently showing promise in Phase III clinical trials for PTSD.”

Botanix Pharmaceuticals

Botanix Pharmaceuticals has reported a loss after tax for the year ended June 30, 2023 of A$9.39 million, a near-30% improvement on FY22 ($13.36m). 

The firm attributed the loss to research and development activities and costs incurred on its Sofpironium Bromide formulation for the treatment of excessive sweating.

As at June 30 2023, the group had a cash balance of $10.25m compared to $7.29m at the end of the previous financial year.

MGC Pharmaceuticals

MGC Pharmaceuticals has reported revenue of A$3.39 million in FY23, down 28% on $4.73m the previous year.

The firm blamed the revenue fall mainly on legislation changes in Australia but insisted “2023 delivered a year of great productivity and significant business growth for the company’s innovative medicinal products”, with sales of $1.91m compared to $1.55m in FY22.

Its CannEpil medicine, for the treatment of drug-resistant epilepsy, is now available in the UK by Named Patient Request and has been received by its first patient via the I am Billy Foundation.

Losses for the year deepened to $21.13m, up 23% on the previous year ($17.14m).


AusCann reported a loss of A$1 million in FY23 during a period in which it began to progress its strategic alliance with Perth-based Eurocann.

The deficit follows a loss the previous year of more than $26m, largely a result of one-off impairment costs of $15.4m and a $3.9m impairment of investing properties.

The company delivered revenue in FY23 of $2.3m, up 10% on FY22, derived wholly from government grants of $1.3m along with rental and interest income.

Revenue from sales was zero having previously suspended production of its Neuvis hard-shell capsules due to high manufacturing costs.

However, more cost-effective production sourced during the year will now see AusCann “explore opportunities to realise value in Neuvis”, the company said.

AusCann secured stock valued at $2.2m under its arrangement with Eurocann and has become the exclusive distributor for a range of flower and oil products from HAPA Pharma, Eurocann’s wholly-owned, German-based cultivator and manufacturer.  

Epsilon Healthcare

Epsilon Healthcare shares slipped a further 13% today (Monday) following its interim financial report which revealed a working capital deficit of A$2.6 million and net cash operating expenditure of close to $500,000.

The company, which last week said it was exiting the cultivation business to focus on its manufacturing and clinic operations, reported a narrowing loss in the six months to June 30 of $717,000, down from $8.08m in the previous corresponding period.

The decline was due to the absence of any impairments charges which impacted the previous corresponding period, while costs had also been kept under control, the firm said.

Revenue during the period climbed 3% to $3.3m as production at its Southport facility “continues to ramp up from domestic clients”.

But the encouraging headline result could not hide Epsilon’s underlying issues, with an independent auditor warning there was material uncertainty surrounding the company.

In addition to the loss and net cash operating outflows, the company had a working capital deficiency of $2.6m and only $301,000 of cash at bank.

However, Epsilon remained bullish.

“Notwithstanding this, the directors believe the group will be able to pay its debts as and when they fall and to fund near-term activities from operating cash flows,” the firm said. “If necessary, recourse could be made to loan and/or equity funds.”

Epsilon shares are trading at $0.02c.

Melodiol Global Health

Melodiol Global Health suffered a loss of A$28.2 million in the six months to June 30 – up from $7m last year – with impairment costs of $10.4m, additional finance costs of $5m and employee benefit expenses of $4m behind the deepening deficit.

While revenue climbed 62% to almost $7m, non-cash impairment costs relating to Sierra Sage Herbs – a division it is looking to sell – and Health House UK hit the bottom line.

At the end of June, Melodiol had a cash balance of $1.1m and net assets of $9m, down sharply from $22.3m at the end of December.

Net cash used in operating activities during the six-month period fell marginally to $5.8m.

Meanwhile, its Australian business, Health House International, generated $2.8m in revenue while contributing $124,000 to the loss, Melodiol said.

Health House

The company said expenditure associated with non-operating items, including finance and mergers and acquisition costs, will decrease over time and put the operation in a healthier financial position.

Focusing on the revenue growth, chief executive William Lay said the trajectories of recreational arm Mernova Medical and Health House were encouraging.

“The momentum from our core operating divisions is evident through both our half-year results and the company’s latest announcements… which highlight that positive revenue and earnings trends have continued into the September quarter,” he said.  


ASX-listed Bioxyne, the subject of a reverse takeover by Breathe Life Sciences (BLS) in May, has reported a loss after tax of almost A$2m in FY23 on revenues of $5.2m.

Under accounting methodology, the results represent 12 months’ trading of BLS and one months’ trading of Bioxyne.

In FY22, Bioxyne as a standalone operation generated revenue of $2.4m and reported a loss of $237,000.

Net cash used in operating activities in FY23 hit $1.1m, with the combined group holding available cash of $3.8m at the end of June.

The company said costs associated with re-positioning the business post-acquisition have “weighted on the result”, including non-cash share-based payments of $697,000 for services rendered by employees and consultants.

Bioxyne shares jumped 45% on Monday to $0.016c.


Prior to launching Cannabiz, Martin was co-founder and CEO of Asia-Pac’s leading B2B media and marketing information brand Mumbrella, overseeing its sale to Diversified Communications in 2017. A journalist...

Steve has reported for a number of consumer and B2B titles over a journalism career spanning more than three decades. He is a regulator contributor to health journal, The Medical Republic, writing on...

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