Zomedica Improves Efficiency and Cuts Costs by Moving to New Headquarters

Rhea-AI Summary

Zomedica (NYSE American:ZOM) has relocated its corporate headquarters within Ann Arbor, Michigan, marking a strategic move to improve operational efficiency and reduce costs. The new facility, which replaced their previous Phoenix Drive location after its lease expired on January 31, 2025, represents a 19% reduction in square footage and a 50% reduction in base annual rent.

This relocation is expected to generate over $200,000 in annual cost savings while providing a modernized workspace for the company's growing team. According to management, the move aligns with Zomedica's strategy to achieve profitability by optimizing resources while maintaining investment in innovation and growth. The freed-up capital will be reinvested into the business to accelerate the company's path to financial sustainability.

Positive

• Annual cost savings of over $200,000 from reduced lease expenses
• 50% reduction in base annual rent
• 19% reduction in facility square footage while maintaining operations
• More efficient workspace layout supporting team growth

Negative

• None.

Insights

Financial Analyst

This strategic relocation demonstrates Zomedica's commitment to financial discipline and operational optimization. The $200,000 annual cost reduction, achieved through a 50% decrease in base rent and 19% smaller footprint, is particularly significant for a company of Zomedica's size. This represents approximately 0.17% of their market capitalization, a meaningful improvement in their cost structure.

The move reflects a sophisticated approach to resource allocation, balancing growth capabilities with cost efficiency. By maintaining presence in Ann Arbor's biotech hub while optimizing space utilization, management shows awareness of both operational needs and financial constraints. The 19% reduction in square footage suggests careful analysis of space requirements, indicating the new facility likely eliminates inefficiencies without compromising core operations.

The timing and execution of this real estate decision are particularly noteworthy given current market conditions. With many companies reassessing their real estate footprint post-pandemic, Zomedica has leveraged this trend to secure favorable lease terms. The 50% reduction in base rent suggests skilled negotiation and strategic timing in the local commercial real estate market.

For investors, this move signals management's serious commitment to achieving profitability through tactical cost management. While $200,000 in annual savings may seem modest in absolute terms, it represents the type of disciplined financial management essential for early-stage healthcare companies. The freed-up capital can be redirected toward revenue-generating activities, potentially accelerating the path to positive cash flow.

Relocation to More Efficient Space Supports Growth While Reducing Overhead by Over $200,000 Annually

ANN ARBOR, MI / ACCESS Newswire / February 12, 2025 / Zomedica Corp. (NYSE American:ZOM) ("Zomedica" or the "Company"), a veterinary health company offering point-of-care diagnostics and therapeutic products for equine and companion animals, today announced that that Company has relocated its corporate headquarters to a new facility in Ann Arbor, Michigan.

"Our new headquarters marks an exciting milestone for Zomedica. This move not only provides us with a modernized workspace to accommodate our growing team but also allows us to operate more efficiently by significantly reducing our lease expenses," said Larry Heaton, President and Chief Executive Officer of Zomedica. "Our priority is to make strategic decisions that drive the long-term success of our company. This new space is not only more functional and appealing but also significantly more cost-effective, allowing us to optimize resources while continuing to invest in innovation and growth."

Zomedica's lease for its prior Ann Arbor headquarters, located on Phoenix Drive, expired on January 31, 2025. Under the new lease, Zomedica reduced square footage by approximately 19%, and reduced base annual rent by approximately 50%, representing more than $200,000 in annual cost savings for Zomedica.

"This move is another way we are working diligently to hit profitability," said Scott Jordan, Executive Vice President, Finance & Chief Financial Officer of Zomedica. "By significantly lowering our lease expenses, we are freeing up capital that can be reinvested into the business, accelerating our path to financial sustainability and long-term success."

About Zomedica
Zomedica is a leading equine and companion animal healthcare company dedicated to improving animal health by providing veterinarians innovative therapeutic and diagnostic solutions. Our gold standard PulseVet^® shock wave system, which accelerates healing in musculoskeletal conditions, has transformed veterinary therapeutics. Our suite of products also includes the Assisi^® Loop line of therapeutic devices and the TRUFORMA^® diagnostic platform, the TRUVIEW™ digital cytology system, and the VetGuardian® no-touch monitoring system, all designed to empower veterinarians to provide top-tier care. In the aggregate, their total addressable market in the U.S. exceeds $2 billion. Headquartered in Michigan, Zomedica employs approximately 150 people and manufactures and distributes its products from its world-class facilities in Georgia and Minnesota. An NYSE American company, Zomedica grew revenue 33% in 2023 to $25 million and maintains a strong balance sheet with approximately $78 million in liquidity as of September 30, 2024. Zomedica is advancing its product offerings, leveraging strategic acquisitions, and expanding internationally as we work to enhance the quality of care for pets, increase pet parent satisfaction, and improve the workflow, cash flow and profitability of veterinary practices. For more information visit www.zomedica.com.

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Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements relating to our expectations regarding future results. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for the Company's products, the Company's ability to produce and sell its products, sufficiency of our budgeted capital and operating expenditures, the satisfaction by our strategic partners of their obligations under our commercial agreements, our ability to realize upon our business plans and cost control efforts and the impact of COVID-19 on our business, results and financial condition.

Our forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: the outcome of clinical studies, the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments, uncertainty as to whether our strategies and business plans will yield the expected benefits; uncertainty as to the timing and results of development work and verification and validation studies; uncertainty as to the timing and results of commercialization efforts, as well as the cost of commercialization efforts, including the cost to develop an internal sales force and manage our growth; uncertainty as to our ability to successfully integrate acquisitions; uncertainty as to our ability to supply products in response to customer demand; uncertainty as to the likelihood and timing of any required regulatory approvals, and the availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; veterinary acceptance of our products; competition from related products; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; our ability to secure and maintain strategic relationships; performance by our strategic partners of their obligations under our commercial agreements, including meeting distribution obligations; risks pertaining to permits and licensing, intellectual property infringement risks, risks relating to any required clinical trials and regulatory approvals, risks relating to the safety and efficacy of our products, the use of our products, intellectual property protection, risks related to the COVID-19 pandemic and its impact upon our business operations generally, including our ability to develop and commercialize our products, and the other risk factors disclosed in our filings with the SEC and under our profile on SEDAR+ at www.sedarplus.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Investor Relations Contact:
Zomedica Investor Relations
investors@zomedica.com
1-734-369-2555

SOURCE: Zomedica Corp.

View the original press release on ACCESS Newswire

FAQ

How much will Zomedica (ZOM) save annually from its new headquarters relocation?

Zomedica will save over $200,000 annually through reduced lease expenses at its new Ann Arbor headquarters.

When did Zomedica (ZOM) move to its new headquarters?

Zomedica moved to its new headquarters after its previous lease on Phoenix Drive expired on January 31, 2025.

What is the square footage reduction in Zomedica's (ZOM) new headquarters?

Zomedica reduced its headquarters square footage by approximately 19% with the new location.

How much did Zomedica (ZOM) reduce its base annual rent in the new headquarters?

Zomedica reduced its base annual rent by approximately 50% with the move to the new headquarters.

How will the headquarters relocation impact Zomedica's (ZOM) path to profitability?

The relocation will free up capital through cost savings that can be reinvested into the business, accelerating Zomedica's path to financial sustainability.