Eevia Health Plc (”Eevia” or “the Company”) announced on Tuesday, March 19th, that the Company has received a grant of approx. SEK 2.7m (EUR 243k) from Business Finland for finalizing a development project for the documentation of bioactivity on Eevia’s products. Eevia executed the project in 2023 and submitted the final report in Q1-24, which has now been approved.
A central activity in the project was a broad in vitro screening of Eevia’s top extracts on the Eurofins BioMAP phenotyping platform. The successful execution of the study provided Eevia with a collection of new insightful research data on the Company’s products, with especially promising bioactivity for one ingredient. Eevia is now seeking approx. EUR 0.8m in new non-dilutive funding from the continuation project named ”Global Vision”.
Additionally, Eevia announced on Monday, March 18th, that the Company has revised its information policy. This means that from now on, Eevia will only disclose orders or contracts with a sales value over EUR 50k, or when the accumulated value of several smaller orders exceeds that threshold, contrasting with the previous threshold of EUR 10k.
Yesterday’s announcement was closely followed by the news that Eevia has received a framework agreement of approx. SEK 1.5m (USD 142k) for the elderberry extract Feno-Sambucus™ 7 Organic from a distributor in the US. The order comes from Select Ingredients, a distributor located in San Diego, specialized in organic ingredients and high-quality natural plant extracts, serving branded customers in California and other large states across the US. The end customer is a company in the whole foods and drinks segment, which is experiencing rapid growth across North America.
On Tuesday, March 19th, Eevia announced that the Company has received multiple orders with an accumulated value of approx. SEK 0.5m (EUR 50k) from various European customers. The sales orders are for the products Feno-Chaga M (Chaga extract), Feno-Myrtillus 25 Organic, Feno-Myrtillus 36 Organic (both bilberry extracts) and Fenoprolic 70 Organic (Pine bark extract). Thus, Eevia has received sales orders totaling approx. SEK 2.0m during the last two days, and the Company expects further repeat orders in the future from the same customers.
Analyst Group’s view
“Given Eevia’s challenging H2-23, where the repercussions from the loss of the major customer became evident, Analyst Group is pleased to see signs of a strengthened business momentum, as highlighted by the multiple sales orders totaling approx. SEK 2.0m announced recently. To put this number in context, Eevia’s net sales amounted to approx. SEK 3.6m (EUR 317k) during Q4-23, hence, the sales orders from this week equals approx. 56 % of the net sales in the last quarter.
The large framework agreement of approx. SEK 1.5m marks the first order where Eevia offers free on board (FOB) prices from New Jersey. The Company’s recent reorganization of distribution in North America, announced in January 2024, is already yielding results. By maintaining buffer stock in New Jersey and thus reducing lead times, Eevia is poised to enhance the Company’s competitiveness in the North American market, which presents considerable growth opportunities ahead.
Additionally, the received grant of approx. SEK 2.7m is of major importance, given Eevia’s strained financial position at the end of Q4-23. A strengthened cash position enables Eevia to be more flexible in terms of marketing incentives to fuel future growth and broadening the customer base, which is an important task following the major customer loss last year.
Overall, Analyst Group views the recent news positively, as the sales orders demonstrate that Eevia has taken necessary actions towards regaining growth. This is exemplified by the reorganized distribution in the US, which is already bearing fruit. With a more diversified customer base, a strong product portfolio, promising growth prospects in North America, and a strengthened balance sheet, Eevia is taking the right steps toward returning to growth.”
