Forbes promises sales growth
10 per cent sales increase this year, providing funding for the
development of its pharmaceutical compounds.
The company, which saw sales dip slightly during the first quarter to C$3.3 million from C$3.4 million the prior year, said that if existing sales contracts and forecasted supply requirements are borne out, revenue for the year should reach C$15.6 million, up 10.6 per cent on 2003.
Forbes is expecting to receive European regulatory approval for use of its non-GM sterols in foods in the near future and will then have significant advantage over suppliers of soy-derived sterols in the European marketplace.
It is currently expanding its facility, which makes sterols from forestry by-products, from 1000 to 1500 metric tonnes in anticipation of such demand.
Costs remained relatively level with the previous year's quarter, although a change to accounting policy related to employee stock options to include the recognition of compensation expense has been applied retroactively, adding a cost of C$1 million to the balance sheet.
R&D costs also went up, contributing to a 47 per cent increase in total expenses for the quarter. This in turn led to losses of C$1.7 million.
However recent equity financing worth C$10.75 million has improved working capital since the prior quarter and the company has also been informed that it will be added to the Nasdaq biotechnology index.
