Increase in Revenue Primarily Derived from DermSafe Hand Sanitizer Lotion
VANCOUVER, BC / ACCESSWIRE / December 1, 2020 / (CSE:OVAT)(OTC PINK:OVATF) - Ovation Science Inc. ('Ovation' or the 'Company') is pleased to report $180,994 in revenue in Q3 2020, a 129% increase in revenue over Q3 2019 and an 80% increase over Q2 2020. For the nine months ending September 30, 2020 the Company reported $613,157 in revenue; a 216% increase over the first nine months of 2019.
The significant increase in revenue is primarily derived from the sale of DermSafe®, Ovation's patented hand sanitizer lotion. The Company has been focused on revenue generation with DermSafe through its brokers and distributors in Canada, its new retailer Source For Sports as well as online sales via its DermSafe.com website and expanding its global reach. The Company continues to capitalize on its competitive advantage with DermSafe as the only non-alcohol, 4% chlorhexidine gluconate hand sanitizer powered by Invisicare delivery technology in the marketplace. Along with its unique formulation and benefits, Ovation also recently announced DermSafe received the 'Dermatology Seal of Approval' from the Canadian Dermatology Review Panel.
The Company also announced that an independent study has successfully proven the effectiveness of DermSafe hand sanitizer lotion against a human coronavirus (beta coronavirus strain OC43), a surrogate for SARS-CoV-2 (the virus that causes COVID-19). The results of the controlled laboratory testing showed that DermSafe demonstrated a 99.97% reduction in active viral loads at two time points. Please refer to the press release on July 8th, 2020 for further details and disclosures.
The Growing Market For DermSafe
Terry Howlett, CEO of Ovations Science states, 'DermSafe is a new meaningful and growing revenue stream for Ovation. Our communities and loved ones want reassurances of safety, whether it be for back to school, in the workplace, in restaurants, on airlines, retirement homes or in sports facilities, and DermSafe offers a unique solution that helps protect against the spread of germs. With our strong balance sheet, existing inventory, lean corporate overhead, contract manufacturing and our global distribution model, we can significantly grow our sales of DermSafe without a significant increase in G&A. As such, Ovation is uniquely positioned in a rapidly growing market segment to gain market share from the traditional alcohol-based hand sanitizer market and deliver strong shareholder value.'
According to Grandview Research, 'The global hand sanitizer market size valued at USD 2.7 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 22.6% from 2020 to 2027. Shifting consumer preference towards convenient hygiene products is expected to drive the market. In addition, the recent COVID-19 pandemic at the beginning of 2020 has spurred the market for hand sanitizer. The demand for hand hygiene products persists as the global outbreak of the virus continues to spread. The outbreak has reinforced the significance of regular hand sanitizing and cleaning practices among consumers and is among the prominent factor driving the market.'
To order DermSafe online visit: https://dermsafe.com
The Cannabis Industry Continues to Evolve Both in the USA and Canada
The first portion of 2020 has been challenging for the cannabis industry due to the COVID-19 pandemic and ensuing closures of dispensaries and retail outlets in the United States resulted in a decrease in revenue. The end of the second quarter however is reflecting an increase in sales as access to dispensaries and stores improve. Throughout this pandemic, the Company has been prudently managing its financial resources and by initiating a license agreement for DermSafe, it helped counter-act the temporary decline in cannabis revenue. The majority of the Company's packaging fees earned on its cannabis sales are in Nevada and as the tourism and gaming industry begins to re-open, visitor traffic has increased sales in the dispensaries. The Company also continues to look for additional strategic partners to take its product formulations into Canada and globally.
The balance of the year looks positive for Ovation. The Company has a strong cash balance and has made a significant investment into finished product as well as raw ingredient and packaging inventory for a quick ramp-up of production of DermSafe as we head into the fall flu season and back to school and back to work. As the Company navigates the pandemic and cannabis industry, Ovation continues to put its strategic efforts into creating long-term value for the Company.
For information about DermSafe and to order visit: https://dermsafe.com
For information about Ovation Science products visit: https://ovationscience.com/products/.
Statements have not been evaluated by Health Canada. These products are not intended to diagnose, treat, cure, or prevent any disease.
About Ovation Science Inc.
Ovation Science Inc. is a research and development company that develops topical and transdermal consumer products including DermSafe, all made with patented Invisicare skin delivery technology. The technology enhances the delivery of ingredients to and through the skin and is protected by patents in eleven countries. With over twenty years of topical and transdermal drug delivery experience in the pharmaceutical market, Ovation's management and science team have created a unique pipeline of over twenty-five patent-protected medical / wellness topical and transdermal products along with a line of anti-aging / beauty formulas. Ovation earns revenues from licensing and development fees, royalties, the sale of Invisicare to its licensees and now revenue from its own product sales. Ovation has offices in Vancouver, BC Canada and Las Vegas, Nevada, USA. Ovation trades on the CSE under the symbol OVAT. Visit our website www.ovationscience.com.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular there is no assurance of future sales of DermSafe in Canada or expansion into other countries or that there will be continued growth for either product lines. There are no guarantees of future performance. There is no assurance that cannabis product sales will continue to increase or that Ovation will find licensees outside Nevada or outside of the USA. Ovation Science Inc. cautions that all forward looking statements are inherently uncertain and that actual results may be affected by a number of material factors, many of which are beyond Ovation Science Inc.'s control. Accordingly, readers should not place undue reliance on the forward-looking information. Ovation disclaims any obligation to revise or update any such forward-looking information to reflect future results, events or circumstances, except as required by law.
Neither the Canadian Securities Exchange, OTC Markets nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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SOURCE: Ovation Science Inc.
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