Mr. Luc Gregoire reports

DEVONIAN HEALTH GROUP REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS AND BUSINESS UPDATE

Devonian Health Group Inc. has released financial results for its second quarter ended on Jan. 31, 2024.

Management comments

"This has been a truly transformative quarter for Devonian," said Luc Gregoire, president and chief executive officer of Devonian. "While shoring up our organization structure and focusing our activities for the continued development of Thykamine for atopic dermatitis, we have made significant positive strides in all our operational and strategic areas, including 400-per-cent top-line growth, extinguishing our long-term debt and continuing to grow our patent estate. The strength of our team is exactly what is needed at this time to maximize the opportunities that exist within our pipeline and strategy."

Second quarter 2024 -- business highlights:

• In January, Altius Health Care Inc., the company's wholly owned subsidiary, launched the first authorized generic of dexlansoprazole in Canada to treat symptoms of gastroesophageal reflux disease (GERD).
• The company continued to progress its preparation for its planned phase II/III clinical study for Thykamine in the treatment of mild to moderate atopic dermatitis in pediatric patients, including preparatory work in the qualification of the product to be used in its clinical studies.
• The company simplified its common shares denomination and was given discretion by shareholders to consolidate its shares, if it is deemed useful to help broaden its pool of potential investors or enable it to satisfy listing requirements of U.S. and other stock exchanges.
• Leadership has been bolstered with pharmaceutical industry and capital markets experts:
  • David Baker appointed as non-executive chairman;
  • Mr. Gregoire appointed as president and CEO;
  • Katherine Gregory appointed to board of directors in February, 2024.
• The company was issued a U.S. patent for Thykamine to treat inflammatory bowel disease (IBD) and filed a Patent Cooperation Treaty (PCT) patent application for Thykamine in wound healing.

Second quarter 2024 -- financial highlights:

• Distribution revenue for the quarter was $2.28-million, up 402 per cent year-over-year, driven by the launch of dexlansoprazole near the end of the quarter. For the six-month year-to-date period, distribution revenue was $3.54-million, up 311 per cent year-over-year.
• Net loss for the quarter was $1.2-million, or one cent per share, in line with the year-ago quarter. For the six-month year-to-date period, net loss was $1.93 or one cent per share, as compared with a two-cent loss per share for the same period last year.
• Cash was $1-million, and long-term debts were totally paid off at quarter-end, compared with cash of $5.1-million and long-term debts of $3.7-million at the beginning of the year.
• After quarter-end, liquidity was increased through the closing on Feb. 23, 2024, of a one-year term loan of $2.16-million, and the closing on March 13, 2024, of a private placement offering of $223,800.

About Devonian Health Group Inc.

Devonian Health Group is a late-stage botanical pharmaceutical corporation with novel therapeutic approaches to targeting unmet medical needs. Devonian's core strategy is to develop prescription botanical drugs from plant materials and algae for the treatment of inflammatory-autoimmune diseases, including but not limited to, ulcerative colitis and atopic dermatitis. Based on a foundation of over 15 years of research, Devonian's focus is further supported by a U.S. Food and Drug Administration set of regulatory guidelines favouring a more efficient drug development pathway for prescription botanical drug products over those of traditional prescription medicines.

We seek Safe Harbor.