Lattice Biologics Ltd. Reports Second Quarter 2021 Results and Resumes Trading
Lattice Biologics Ltd. (TSX-V: LBL, OTCBB: LBLTF) reported financial results for Q2 2021, noting significant restructuring. The U.S. subsidiary reduced $7.2 million in debt, but faced Chapter 7 bankruptcy protection due to unresolved obligations. Despite the challenges, Lattice intends to pivot into the psychedelic and cannabis life sciences market, emphasizing its expertise in biologics. New board members with relevant industry experience were appointed to support this transition. The company remains compliant with FDA regulations and aims to continue serving its biologics customers during this reorganization.
- Restructured U.S. subsidiary cut $7.2 million in debt.
- Maintains compliance with FDA and international guidelines.
- Plans to enter the growing psychedelic and cannabis life sciences market.
- U.S. subsidiary filed for Chapter 7 bankruptcy protection.
- Unable to resolve debt obligations with the largest secured creditor.
Lattice Biologics Ltd. (TSX-V: LBL) (OTCBB: LBLTF) (“Lattice Biologics” or the “Company”) announces financial results for Q2 2021.
Highlights of Six Months Ended March 31, 2021
Sales and Product Offerings
- Restructured U.S. subsidiary removes
- Canadian parent has remained in compliance with all FDA registrations and international guidelines.
- All existing inventory processed by Lattice Biologics Inc., or under private label, is safe to use until the expiration date and remains in full compliance with all regulatory bodies.
- Lattice maintains all quality responsibilities related to tissue already processed.
2021 Business Update:
“Business conditions have been exceptionally trying this year, and Lattice Biologics is no exception. Unfortunately, we were not able to resolve our debt obligations with our largest secured creditor. Lattice Biologics Inc., the U.S. subsidiary, was forced to restructure amid the multiple demands of the COVID-19 pandemic. Although the Company had no quality issues related to its products, due to excessive debt, we were forced to seek Chapter 7 bankruptcy protection for the subsidiary.
Following a comprehensive strategic review of the Company, we made the exciting decision to enter and focus on the fast growing psychedelic and Cannabis life sciences. With Lattice’s extensive knowledge of processing and purifying advanced biologics, we intend to be a leader in the emerging psychedelic market. We are proud to announce the addition of Ian Kerwin and Shawn Baghali to the Board of Directors. Both Shawn and Ian have extensive knowledge of the cannabis and psychedelic markets. Exiting Biologics allows the management team to reorganize the subsidiary and related debts while not affecting the holding and listed Company and to allow the Company and shareholders to focus on and benefit from future generated medicines and treatments. During this transition period, we remain committed to our Biologics customers, and will continue to support our technologies and services,” said Guy Cook, CEO.
Lattice Biologics maintains its commitment to honoring the gift of donation by maintaining a strong quality program that supports our existing and previous clients throughout the reorganization.
About Lattice Biologics Ltd.:
Lattice Biologics is traded on the TSX-V under the symbol: LBL.
Lattice Biologics develops and manufactures biologic products to domestic and international markets. The Company’s products are used in a variety of surgical applications.
Lattice Biologics maintains its headquarters, in Island Park, ID and maintains all necessary licensures to process and sell its tissue engineered products within the U.S. and internationally.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information:
Certain information contained in this news release constitutes “forward-looking statements” within the meaning of the ‘safe harbour’ provisions of Canadian securities laws. All statements herein, other than statements of historical fact, are to be considered forward looking. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “planned”, “potential”, “future”, “expected”, “could”, “possible”, “goal”, “intends”, “will” or similar expressions. Forward-looking statements in this news release include, without limitation: information pertaining to the Company’s strategy, plans, or future financial performance, such as statements with respect to the Transaction, and other statements that express management’s expectations or estimates of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lattice to be materially different from those expressed or implied by such forward-looking statements.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management as of the date such statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The factors and assumptions that could prove to be incorrect, include, but are not limited to: that market prices will be consistent with expectations, the continued availability of capital and financing, and that general economic, market and business conditions will be consistent with expectations. The forward-looking statements are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.
United States Advisory: The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered, sold, or resold in the United States or to, or for the account of or benefit of, a U.S. Person (as such term is defined in Regulation S under the U.S. Securities Act) unless an exemption from the registration requirements of the U.S. Securities Act is available. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in the state in the United States in which such offer, solicitation or sale would be unlawful.
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