Willow Biosciences Inc. (TSX:WLLW) (OTCQB: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.

Willow is a precision fermentation company that uses advanced science and technology to produce natural ingredients for the health and wellness, food and beverage and personal care markets, including cannabis.

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

• Ended Q3 with approximately $4.0 million in cash and over $0.6 million in receivables.
• Reported Q3 revenue of $0.7 million and year-to-date total revenue of $1.1 million, marking a record for both the quarter and the year.
• Willow continued to transition to a more efficient company with a total cash burn from operating activities, excluding changes in working capital, and transition costs to below $1.5 million for the third quarter of 2023.
• Achieved a targeted objective by reducing ongoing cash burn to below $0.5 million per month.
• Willow closed an insider-led convertible debenture financing on October 10, 2023, raising gross proceeds of $0.8 million.

Key Third Quarter Corporate Highlights

• Progress in the savory food program with Kalsec Inc., moving from feasibility to the R&D and scale-up stage.
• Initiation of a new program with a leading NASDAQ-listed biopharma company for sustainable manufacturing routes, with successful results in the initial discovery phase.
• A patent application was filed for a cost-effective corticosteroid production process using Willow's BioOxi platform, with ongoing commercial discussions.
• Completion of research and development on sustainable production of ursodeoxycholic acid (UDCA), leveraging BioOxi technology, and ongoing commercialization discussions.
• Collaboration announcement with Suanfarma for the development of a large-volume anti-infective API through precision fermentation.
• Confidential settlement with Aurora Cannabis Inc. (NASDAQ:ACB) regarding ongoing patent litigation in Canada, with any associated costs already accrued in previous quarters.

"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.

Price Action

CANSF's shares were trading 8.13% higher at $0.0556 per share at the time of writing on Wednesday afternoon.

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