PIL
29/08/2014 09:52
HALFYR
REL: 0952 HRS Promisia Integrative Limited
HALFYR: PIL: Half Year Financial Results
REPORT OF THE CHAIRMAN AND CHIEF EXECUTIVE
The Chairman and Chief Executive have the pleasure in presenting the Half
Year Report for Promisia Integrative Limited and its subsidiaries ("the
Group") for the six month period ended 30 June 2014.
Promisia Integrative Group Results to 30 June 2014
The Group incurred a net unaudited loss of $388,557 for the half year ended
30 June 2014 (2013: $72,014 loss). Significant investment has been made in
the first 6 months of 2014 in developing both the sales platform and
importantly the comprehensive scientific research programme backing its
product Arthrem(TM). A key aspect of developing the sales platform has been
the temporary relocation of the Chief Executive Officer to the United Sates
during the second quarter of 2014. Revenues from the sale of Arthrem(TM) for
the period were $122,500 compared with $65,900 in the previous half year.
Arthrem(TM) is currently only sold in New Zealand.
The Company's product is now available in over 400 pharmacies throughout New
Zealand as well as on the New Zealand compliant e-commerce website. The new
branding and packaging has been fully implemented and feedback from our New
Zealand Distributor, Pharmabroker, is very positive.
The business plan is to continue building a company that is focused on
developing and marketing unique and innovative therapeutic natural products.
These products will have proven safety and efficacy characteristics derived
from robust scientific data and employing a recurring sales platform. Our
goal is to add scientific methodology and validity to an industry that is
often perceived as unscientific.
Capital Raising from Share Purchase Plan and Associated Placement
During the half year the Company raised $567,000 from its Share Purchase Plan
and an additional placement of subscribed shares totalling $1,281,000 was
made to a range of investors including some institutional support. These new
shares were all issued at 4.08 cents each and were fully allotted and paid
for during July 2014. The Company was pleased with the range of investors
involved and gratified by the level of institutional support. The Company's
Directors and CEO all took up their full entitlements under the Share
Purchase Plan.
Research Grant Funding
During the first quarter of 2014 the Company was awarded funding from
Callaghan Innovation, which amounted to 40% of the total cost to undertake
locally based in vitro laboratory studies of its unique plant extract
presently used in the dietary supplement Arthrem(TM). Preliminary results of
these laboratory studies have been positive and formal results will be
published in a reputable peer-reviewed scientific journal in due course.
In addition, following approval of the New Zealand Health and Disability
Ethics Committee, the Company gained further grant assistance from Callaghan
Innovation for its randomised double blind placebo-controlled clinical trial,
which is being carried out at Dunedin Hospital. Results from this trial are
expected in the first quarter of 2015.
United States Developments
The Company's Chief Executive Officer is currently located in Washington DC.
Mr Charles Daily has been working to build key relationships with individuals
and companies who can assist with the product's launch in the United States.
In that regard, the Company has recently entered into a consulting agreement
with Mr Jeff Traister, President of Traister Creative LLC, to assist with the
development and implementation of a sales platform for its joint support
product Arthrem(TM) in the United Sates.
Jeff has 25 years of experience in executive management in marketing and
business development. His experience includes launching new ventures and
promoting new products and services within the healthcare,
biopharmaceuticals, nutritional supplements and medical and medical device
industry. Past clients in the US include, Reed Elsevier, Kimberly-Clark
Healthcare, Roche and Pfizer. He holds an MBA in marketing from University of
Arizona and a Masters in Science from Columbia University College of
Physicians & Surgeons in New York.
Outlook
In order for Promisia Integrative to become a global leader in developing and
marketing unique therapeutic natural products, it must demonstrate commercial
success with its first to market product, Arthrem(TM). From this success
other products will follow. Good progress is being made on new formulations
and the testing of those formulations will be in keeping with the Company's
strategic positioning for developing effective and safe therapeutic products
using robust, validated scientific methodology.
The Board continues to remain enthusiastic about progress in sales growth
both domestically and in due course overseas. Even without our scientific
based programme, sales should continue to grow. This has already been
demonstrated with current domestic sales growth to date. It is expected that
proven efficacy will help accelerate growth due to the potential endorsement
and recommendation of our ArthremTM product by healthcare professionals along
with increasing trust and confidence as expressed by consumers. Further
development of new products, following similar steps as for Arthrem(TM) in
terms of scientifically and clinically proving efficacy and safety and
employing a similar sales platform, will bolster future sales growth.
Chairman
E.M.M. Johnson
Chief Executive C.O
Daily
End CA:00254582 For:PIL Type:HALFYR Time:2014-08-29 09:52:51
