Apollon Formularies - Annual Report for Year Ended 31 December 2020
RNS Number : 7254D
Apollon Formularies plc
30 June 2021
 

30 June 2021

 

 

Apollon Formularies plc

("Apollon" or the "Company")

Annual Report and Financial Statements

for the year ended 31 December 2020

 

 

 

Chairman's Statement

 

I am pleased to present the audited financial statements of Apollon Formularies plc ("Apollon" or the "Company"), to shareholders for the year ended 31 December 2020.

 

It was announced in 2020 that Apollon would enter into a reverse takeover with AfriAg Global PLC which was completed in early 2021. Much of 2020 was spent gearing up to listing on the Aquis Stock Exchange.

 

Since the year-end, we published a prospectus setting out the final details of the acquisition of Apollon Limited and the re-admission of the enlarged group to trading on the Aquis Growth Market. As part of the listing Apollon secured £2.5 million through an oversubscribed fundraise at 5p, highlighting the investor appetite for our unique medical cannabis company.

 

While we have achieved a huge milestone for Apollon, of which I am immensely proud, we must not forget the setting in which this was achieved. The continued social and economic impact of the coronavirus pandemic has touched all corners of world and I would like to send well wishes to all and thank the Apollon team in Jamaica and the United Kingdom for their hard work and resilience through these challenging times.

 

Due to a national lockdown in Jamaica, Apollon's affiliate, Apollon Formularies Jamaica Limited ("Apollon Jamaica"), which operates the processing and extraction laboratory, patient treatment centre and an onsite medical cannabis dispensary at Doc's Wellness Centre, was temporarily closed.

 

It was with great pleasure that, as announced on 27 May 2021, we have reopened the facility and operation in Negril, Jamaica, and have resumed treating patients, following Apollon Jamaica's receipt of COVID-19 Health and Safety Protocols Certification.

 

Jamaica

 

Apollon's primary focus remains on strengthening its core business in Jamaica, where our affiliate, Apollon Jamaica, is federally licenced to cultivate, conduct research and development, process and extract cannabis oils, perform clinical trials under the direction of the Ministry of Health (MOH), and dispense its medical cannabis formulations.

 

Alongside the reopening of Apollon's treatment facility in Negril which was closed due to Covid=19, the Company also signed a long-term lease in 2021  for its first International Cancer Institute in the Jamaican capital, Kingston, which is the country's key medical hub. The new facility will allow Apollon to expand its patient treatment programme for both Jamaican and international medical patients and, at the same time, generate additional revenue for the Company.

 

As well as benefiting Apollon's patients, this facility brings the excellent opportunity to gather invaluable patient data on the Company's medical cannabis formulations. It is our ability to treat patients under licensed physician prescriptions and perform clinical trials to gather patient data that sets Apollon apart from its peers.

 

Integral to Apollon's work is the ability to handle THC, a psychoactive compound found in cannabis which is under schedule one control in the United Kingdom. Our team in Jamaica, led by Paul Burke, can produce full-spectrum oils, inclusive of THC, meaning we can effectively treat different diseases with targeted formulations.

As announced in May 2021, we completed joint testing with Aion Therapeutic Inc. ("Aion"), a BC based international pharmaceutical company trading on the Canadian Securities Exchange, which revealed a combination of Aion's medicinal mushroom formulations and Apollon's medical cannabis formulations were effective in killing HER2+ breast cancer cells grown in 3D cell culture via three separate mechanisms: direct cell cytotoxicity, immune stimulated T-cell cytotoxicity, and macrophage induced phagocytosis.

 

The independent testing, which was performed by BIOENSIS, a third party, pre-clinical predictive pharmaceutical testing laboratory, showed that Apollon Jamaica's medical cannabis formulations were particularly effective in killing living HER2+ cancer cells directly. When the two formulations were combined, nearly 100% of HER2+ breast cancer cells in 3D cell cultures were killed through the three different pathways.

 

Further to this, Apollon announced at the end of June that our medical cannabis formulations were successful in killing triple-negative breast cancer (TNBC) cells in 3D cell cultures. Metastatic triple-negative breast cancer is an aggressive form of breast cancer with limited treatment options and comprises around 10-20% of diagnosed breast cancers. The testing was again performed by BIOENSIS and showed that our formulations killed nearly 100% of the TNBC cells in 3D cultures.

 

Although we are in the early stages with Apollon's treatment for breast cancer, the significance of our pre-clinical laboratory findings is clear. In women, breast cancer is the most commonly diagnosed cancer and the leading cause of cancer death[1]. The medical cannabis formulations created by Apollon which are currently available by physician prescription in Jamaica are comparatively inexpensive, providing an opportunity for more woman with breast cancer both locally and internationally to be treated by licensed Jamaican doctors.

 

If successful in the clinical setting, we have the ability to make a positive impact, especially in Jamaica, where many women have gone without treatment because traditional chemotherapy, radiation and surgery cancer treatment protocols are expensive and require a great deal of infrastructure.

 

Finally, the Company has commenced the legal process to transfer the economic interest of 49% currently held in favour of Apollon Jamaica to the Company. The Cannabis License Authority licenses are required to be transferred individually. This important process cannot be "fast-tracked" and the Company will update the market on progress at its earliest opportunity.

 

Outlook

 

Our successful listing in the London market, coupled with the reopening, and expansion, of our businesses in Jamaica has signalled a strong and positive start to the year for Apollon.

 

As we look towards the next financial year, the challenges we faced during 2020 remind us of the robustness and resilience of Apollon's business. In what is a relatively new industry, we bring investors an established, revenue generating, seed to patient company, complete with a full suite of licences and extensive data on our medical cannabis formulations.

 

We have already shown the ambition of the Company securing a three-year lease for our first International Cancer Institute in Kingston to complement our work at Doc's Wellness Centre in Negril. The lease was signed in June 2021. In the near-term, our focus will remain on independent testing of our medical cannabis formulations, particularly for different cancers. Our results thus far indicate that Apollon's treatments appear to be effective in killing triple-negative and HER2+ breast cancer cells in 3D culture.

 

In the long-term we plan to emulate our success in Jamaica across jurisdictions where medical use of THC containing products is legal, as we continue to deliver on Apollon's strategy of becoming the premier global medical cannabis company.

 

Finally, I would like to thank again our team in Jamaica and the UK, our strategic partners, shareholders, and advisors for their work in Apollon's listing and ongoing support. As we continue to adapt to the 'new normal' bought on by Covid-19, 2021 looks to be a productive year of treating patients, developing new targeted formulations, and growing our business. In the meantime, we look forward to providing further updates on Apollon's successes in 2021.

 

The directors of the Company accept responsibility for the contents of this announcement.

 

 

Stephen D Barnhill M.D

Chairman

30 June 2021

 

[1] Hyuna Sung PhD, Jacques Ferlay MSc, ME, Rebecca L. Siegel MPH, Mathieu Laversanne MSc, Isabelle Soerjomataram MD, MSc, PhD, Ahmedin Jemal DMV, PhD, Freddie Bray BSc, MSc, PhD. CA: A Cancer Journal for Medical Practitioners; Global Cancer Statistics 2020: GLOBOCAN Estimates of Incidence and Mortality Worldwide for 36 Cancers in 185 Countries

 

Financial performance review

The profit of the Company for the period ended 31 December 2020 before taxation amounts to £330,942 (31 December 2019: loss of £2,182,000). The profit relates to the write off of fees accrued from prior years. The prior year loss was attributable to a £1.953,000 write off of loans to subsidiaries in addition to £206,000 in administration expenses and £23,000 in investment losses.

 

Dividends

The Directors do not recommend the payment of a dividend for the year.

 

The full audited financial results to 31 December 2020 will shortly be available at the Company's website: www.apollon.org.uk.

 

 

For additional information, please visit www.apollon.org.uk or contact:

 

Apollon Formularies                                                          

Tel:                                         +44 207 907 9314

Stene Jacobs                         stene@apollon.org.uk 

 

Peterhouse Capital Limited (Corporate Adviser)        

Tel:                                         +44 207 220 9795

Guy Miller                             gm@peterhousecapital.com

 

Blytheweigh (Financial PR/IR-London)           

Tel:                                         +44 207 138 3204

Tim Blythe                             tim.blythe@blytheweigh.com

Megan Ray                            megan.ray@blytheweigh.com 

 

 

 

 

Financial statements

Statement of comprehensive income for the year ended to 31 December 2020

__________________________________________________________________________________________

 



Year ended

Year ended



31 December

31 December



2020

2019



£'000

£'000









Administration expenses


332

(206)





Operating profit/(loss)


332

(206)





Loans advanced to subsidiaries written-off


-

(1,953)

Investment loss


(2)

(23)





Profit/(Loss) before taxation


330

(2,182)





Taxation



-









Profit/(Loss) for the period attributable to equity holders of the parent


330

(2,182)





Other comprehensive income




Transfer to income statement


-

-

Other comprehensive income for the period net of taxation


-

-





Total comprehensive income for the year attributable to equity holders of the parent


330

(2,182)





Earnings per share




Basic (pence)


1.05

(8.67)

Diluted (pence)


1.01

(8.67)





 

 

 

 

 

 

 

 

 



 

Statement of financial position at 31 December 2020

__________________________________________________________________________________________

 



31 December

31 December



2020

2019 (restated)



£'000

£'000

Current assets




Trade and other receivables


9

16

Financial Investments


1,160

1,167

Cash and cash equivalents


12

98



1,181

1,281





Total assets


1,181

1,281





Current liabilities




Trade and other payables


(96)

(525)



(96)

(525)





Net current assets


1,085

756





Net assets


1,085

756









Equity




Share premium account


11,705

11,706

Share based payment reserve


-

128

Retained earnings


(10,620)

(11,078)



1,085

756

 

The financial statements of Apollon Formularies plc (registered number 002845V) were approved by the Board of Directors and authorised for issue on 30 June 2021 and were signed on its behalf by:

 

 

 

 

Stephen D Barnhill M.D

Chairman

 

 


Statement of changes in equity for the year ended to 31 December 2020

__________________________________________________________________________________________

 


Share

Capital

(restated)

Share

Premium

(restated)

Share based

payment

reserve

Retained

earnings

Total


£'000

£'000

£'000

£'000

£'000

At 31 December 2018

1,761

8,630

279

(9,047)

1,623







(Loss) for the period

-

-

-

(2,182)

(2,182)

Total Comprehensive Income

-

-

-

(2,182)

(2,182)







Shares issued

1,410

-

-

-

1,410

Share issue costs

-

(95)

-

-

(95)

Consolidation of shares*

(3,171)

3,171

-

-

-

Transfer with equity

-

-

(151)

151

-

Total contributions by and distributions to owners of the Company

(1,761)

3,076

(151)

151

1,315







At 31 December 2019

-

11,706

128

(11,078)

756







Profit for the period




330

330

Total Comprehensive Income




330

330







Shares issued

-

-

-

-

-

Share issue costs

-

(1)

-

-

(1)

Transfer with equity

-

-

(128)

128

-

Total contributions by and distributions to owners of the Company

-

(1)

(128)

128

(1)







At 31 December 2020

-

11,705

-

(10,620)

1,085

 

*The movement of £3,171,000 from share capital to share premium is restated.

 

 


Statement of cash flows for the year ended 31 December 2020

__________________________________________________________________________________________

 



Year ended

Year ended



31 December

31 December



2020

2019



£'000

£'000

Cash flows from operating activities




Operating profit/(loss)


331

(206)

Decrease in trade and other receivables


7

1

(Decrease) / Increase in trade and other payables


(428)

67





Net cash outflow in operating activities


(90)

(138)









Investing activities




Receipts on sale of investments


5

-

Payments on purchase of investments


-

(1,160)





Net cash inflow/(outflow) in investing activities


5

(1,160)









Financing activities




Issue of share capital


-

1,410

Issue costs


(1)

(95)





Net cash (outflow)/inflow from financing activities


(1)

1,315





Net (decrease)/increase in cash and cash equivalents


(86)

17





Cash and cash equivalents at beginning of period


98

81





Cash and cash equivalents at end of period


12

98

 



 

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