BURBANK, CA, Dec. 05, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Quanta, Inc. (the “Company”) (OTC PINK: QNTA), an applied sciences company based on a patented quantum biology platform that significantly boosts the potency and efficiency of any plant-based matter, provided today an update for its shareholders on the recent activities and plans for the future of the Company and its majority owned subsidiary, Medolife Rx, Inc.
In the recent months, the Company has been focused on navigating through serious challenges. The Company acknowledges the drop in the price of its common stock and the delinquent status with the SEC reporting requirements. The Company provides this update on both its corporate and operational status and its plans to address these matters.
Due to operating losses and lack of capital investment, the Company currently has insufficient working capital. The Company intends to seek additional working capital through an increase in sales, through seeking new sources of working capital financing, or both. The Company is diligently working to increase sales and seek new capital financing; however, the Company can give no assurance that it will increase its working capital.
The Company is delinquent in its SEC filings. Further, the Company’s outside auditors have resigned as of on August 4, 2022. Subject to obtaining additional capital, the Company intends to retain new outside auditors, prepare and file all necessary SEC reports and amend any reports previously filed that require amendment. In addition, the Company is evaluating its prior financial statements to determine whether any of those financial statements need to be restated.
As previously announced, the Company is the subject of an ongoing SEC investigation and has received a Wells Notice. At this time, the SEC has not commenced an enforcement action against us, but the investigation remains open and ongoing. Accordingly, we cannot further comment on this matter at this time.
Notwithstanding the foregoing, we believe in our business and have been continuing to pursue our business goals in the face of these challenges.
The Company announced last year that an affiliated company, Medolife Corporation, had completed the first part of a pharmacokinetics (PK) in vitro study that was requested by the FDA in response to the data submitted for the Pre-Investigational New Drug (PIND 150335) application for Escozine as a COVID-19 treatment. The next and final phase of the PK study is an animal study. Medolife Corporation has not started this phase due to a lack of working capital.
Medolife Corporation is also working with an FDA regulatory consultant to analyze the benefit of using the Medolife Corporation’s existing Real-World Evidence in its upcoming response to the FDA’s comments to the Escozine PIND application. The Real-World Evidence includes data derived from the affiliate’s prior studies in the Dominican Republic and from customers’ use of Medolife Corporation’s supplement and homeopathic products. The US FDA defines Real-World Evidence (RWE) as the clinical evidence regarding the usage and potential benefits or risks of a medical product derived from analysis of Real-World Data (RWD). The Company intends to announce the next steps in the PIND application process once it knows whether Medolife Corporation’s RWE can be used in its response to the FDA.
A delegation of the Dominican Republic Ministry of Environment had one of their bi-annual visits at the scorpion reservation of an affiliated company, Medolife S.R.L., located in the Neiba province in April 2022, wherein the Ministry’s delegation evaluated the current conditions of preserving the natural resources that are the scorpions. The visit was noted to be satisfactory.
Medolife Rx, Inc., a global integrated biotech company with R&D, manufacturing, and consumer product distribution, and a majority owned subsidiary of the Company, has faced supply challenges in recent months that have delayed the production of Immunapens. Medolife Rx has purchased ingredients from new vendors and is in the process of reformulating the pens at this time with the goal of increasing the potency of the product line. Medolife Rx expects to begin producing and selling new batches of the Immunapen product line starting in Q1 2023.
The Company has recently completed modifications to its formulations for its AELIA products, which contain polarized CBD and polarized Vitamin E, to improve the potency.
Subject to sufficient capital, the Company is also developing several marketing campaigns in an effort to increase sales:
There is a revamp of the AELIA and Quanta products Amazon.com listings to improve the shopping experience. In addition, the Company has made the decision to have one exclusive seller on Amazon starting in December for the aforementioned products. By reducing the number of resellers for the products, the Company seeks to achieve stability in the product pricings on the platform.
The Company is also developing a new listing for the Immunapen line of products on Amazon.com. The Immunapen products are expected to be available for purchase on Amazon.com in Q1 2023.
The Company plans to launch promotional campaigns for Immunapens and AELIA through the Company’s social media and email channels.
In another effort to market its products, the Company is also considering implementing influencer marketing to increase product awareness for its Immunapen and AELIA brand products.
Medolife signed an agreement with a US distribution company called Brandgate, who will be overseeing all the sales and marketing of the Company’s products on retail platforms such as Amazon.com, Ebay.com, Walmart.com and Target.com.
The Company also intends to take steps to improve its corporate governance should it obtain sufficient capital. These steps include the following:
Seek D&O insurance in order to add reputable professionals and industry leaders to its Board of Directors and Board of Advisors.
Recruit and hire C-level officers to establish and improve the corporate governance policies and procedures, internal controls and procedures, disclosure control and procedures, and other critical regulatory and administrative aspects of the Company.
The Company’s application to change its name and stock symbol with FINRA was closed in August 2022. If the Company is successful in bringing its SEC reports current, it intends to resubmit the application with FINRA.
“It has been a difficult year full of new challenges for the Company and its staff,” said Dr. Mikaelian. “However, we want to make it clear to our investors and customers that we are working hard and not giving up. We see a path to achieve the goals we set for ourselves. We have a humble but loyal staff that believes in the success of its products and technology and who are working tirelessly to make Medolife a commercially successful biotechnology platform that will continue to focus on creating powerful drugs, cosmetics and supplements for a variety of uses and industries. I truly hope that, starting early next year, we can already achieve notable improvements in the overall operations of the Company. I want to apologize to our investors for the long silence, and I thank them from the bottom of my heart for the support and patience they have shown us.”
Quanta, Inc. is an applied sciences company based on a patented quantum biology platform that significantly boosts the potency and efficiency of any plant-based matter. Medolife Rx, Inc., a majority owned subsidiary of Quanta, is a global integrated biotech company with R&D, manufacturing, and consumer product distribution.
Through the AELIA and Immunapen brand of products, Quanta manufactures and distributes consumer wellness products in areas such as pain relief, beauty, general wellness and immune system support. AELIA and Immunapen products are designed using Dr. Mikaelian’s polarization technology, which applies advances in quantum biology to increase the potency of active ingredients. Ultimately, Quanta’s mission is to deliver better, more effective ingredients to elevate product efficacy, reduce waste, and facilitate healthier, more sustainable consumption.
Beyond its consumer applications, the polarization technology used by Quanta and its subsidiaries has many potential applications. From potentiating bio-ingredients, to producing more-effective carbon-trapping plants, to transformative anti-aging solutions, Quanta could have the opportunity to upend how commercial and pharmaceutical products are made and increase their benefits, while decreasing their chemical concentration.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This release contains statements that are forward-looking in nature which express the beliefs and expectations of management including statements regarding the Company’s expected results of operations or liquidity; statements concerning projections, predictions, expectations, estimates or forecasts as to our business, financial and operational results and future economic performance; and statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “will,” “should,” “could,” and similar expressions. Such statements are based on current plans, estimates and expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. These factors and additional information are discussed in the Company’s filings with the Securities and Exchange Commission and statements in this release should be evaluated in light of these important factors. Although we believe that these statements are based upon reasonable assumptions, we cannot guarantee future results. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.