Epsilon Healthcare Limited (ASX:EPN) (the Company or Epsilon) reports on its activities and provides its Appendix 4C for the quarter ended 30 June 2021.
The Company’s capital conservation strategy as led by the Group CEO and COO has delivered another strong result in Q2 2021, with net cash used in operating activities reduced by 50% in Q2 2021 over Q1 2021, resulting in the Company having $3.1 million cash in bank at the end of Q2 2021.
During the quarter, the Company has invested further in the Southport Facility to add new production capabilities, including improved filtration technologies and has now commenced dried flower packaging for customers under a licence received from the TGA earlier this year.
Tetra Health, the Company’s clinic network, has continued to report strong growth, with record revenues for the half year to 30 June 2021. Unaudited revenue for the Tetra business exceeded $750,000 for the half year and is a record 6 month run rate.
The Company refers to its announcement in June 2020 with respect to a production agreement with Medleaf Therapeutics which provided for an initial order of 2,250 bottles of full spectrum CBD medicines. As disclosed in the Q3 2020 Quarterly Update (ASX Release: 30 October 2020), the Company’s fulfilment of this order within the original delivery timeframes was frustrated as a result of delays in securing the required approvals from the New Zealand government for the supply, as well as associated product stability testing required by the New Zealand government.
The Company notes that it has a debt facility due for repayment on or before 31 October 2021, with a current balance of $3.52 million owing following repayments of $477k during the quarter.
As required by the ASX Listing Rules, the Company notes that payments made to related parties and their associates in Q2 2021 were all related to remuneration for services under existing services agreements, with no non-remuneration related payments made in the quarter.
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Epsilon Healthcare Limited (ASX:EPN) (the Company or Epsilon) is pleased to announce the appointment of two new directors of Epsilon, effective 1 August 2021. The new appointments bring significant experience to the Company across pharmaceuticals, research and development, operational optimisation, and supply chain logistics as the Company progresses towards being a toll and contract pharmaceutical manufacturer for the medicinal cannabis industry.
Dr Rob Jenny is currently an executive at Cannvalate – an Australian medicinal cannabis services company - where he manages their business development activities in the Australian and New Zealand market. Rob has previously held management and research roles including at Ensign Laboratories – one of Australia’s largest contract pharmaceutical manufacturers - Immunoglobal Group, and Monash University.
Mr Simon Rowe is currently the Supply Chain Transformation & Operations Leader ANZ at Kimberly-Clark – a Fortune 500 personal care company. Prior to that, Simon has held associate director and senior manager level roles within KPMG and EY advisory specialising in operational transformation and optimisation.
Steven Xu, Epsilon’s Chairman
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We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.
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