Welcome to the tale of Willow Biosciences Inc., a precision fermentation company that’s been making waves. This past quarter, they managed to rake in record revenue and hit significant business expansion milestones, sticking it to the naysayers and charting their path through the murky waters.
Willow Biosciences Inc. WLLW CANSF has reported its financial and operating results for the third quarter ending September 30, 2023, showcasing record revenue and substantial progress in its business expansion.
The company has truly outdone themselves, using advanced science and technology to bring forth natural ingredients for the health and wellness, food and beverage, and personal care markets. They’re even dabbling in cannabis. A bold move, indeed.
Dr. Chris Savile, Willow’s president & CEO, highlighted the successful implementation of the company’s strategy to enhance sustainability and reduce operational expenses.
Key Third Quarter Financial Highlights
- The quarter came to a close with a cool $4.0 million in cash and over $0.6 million in receivables, giving them a hefty war chest for future endeavors.
- They’ve managed to pull in a handsome $0.7 million in revenue for Q3, bringing the year-to-date total to $1.1 million, a feast for the senses and the wallet.
- Transitioning to a more efficient company, they’ve lowered their cash burn from operating activities, excluding changes in working capital, and transition costs to below $1.5 million for the third quarter of 2023, an admirable feat.
- With a target in sight, they’ve slashed ongoing cash burn to below $0.5 million per month like a samurai cutting through the noise.
- They even managed to close an insider-led convertible debenture financing on October 10, 2023, raising gross proceeds of $0.8 million, demonstrating their financial acumen.
Key Third Quarter Corporate Highlights
- They’ve made strides in the savory food program with Kalsec Inc., from feasibility to the R&D and scale-up stage, illustrating their commitment to flavor exploration.
- A new program kicked off with a leading NASDAQ-listed biopharma company for sustainable manufacturing routes, yielding successful results in the initial discovery phase. A match made in heaven.
- A patent application was filed for a cost-effective corticosteroid production process using Willow’s BioOxi platform, with ongoing commercial discussions, showing their eagerness to innovate and disrupt.
- They’ve wrapped up research and development on sustainable production of ursodeoxycholic acid (UDCA), leveraging BioOxi technology, and are knee-deep in commercialization discussions like a diligent detective on a case.
- A collaboration announcement with Suanfarma for the development of a large-volume anti-infective API through precision fermentation is a testament to their adaptability and ingenuity.
- A confidential settlement with Aurora Cannabis Inc. ACB regarding ongoing patent litigation in Canada was achieved, with any associated costs already accrued in previous quarters, turning a tremor into a mere ripple in their journey.
“The excitement in the industry around our BioOxi program and its potential to transform the multi-billion dollar steroid market has led to negotiations on multiple new programs that are expected to close in the first half of 2024,” said Dr. Savile. “These programs are expected to generate both near-term R&D revenue, including up-front cash, and longer-term upside through milestones, royalties, and ingredient supply without the need for significant internal investment.”
Business Outlook for 2023: The company anticipated continued strong R&D revenue growth in Q4 and expects the first commercial revenues as early as Q1 2024.
CANSF’s shares were trading 8.13% higher at $0.0556 per share at the time of writing on Wednesday afternoon, standing tall like a skyscraper in the financial district.
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