EACOM Timber Corporation
TSX VENTURE : ETR.H

EACOM Timber Corporation

November 30, 2009 21:31 ET

EACOM Timber Corporation Announces Financial Results for the Quarter Ended September 30, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2009) - EACOM Timber Corporation (TSX VENTURE:ETR.H) today reported its financial results for the quarter ended September 30, 2009.

Results of operations for the quarter ended September 30, 2009

The loss and comprehensive loss for the quarter ended September 30, 2009 was $429,000 ($0.01 per common share) compared to $554,000 ($0.02 per common share) for the quarter ended September 30, 2008, a decrease of $125,000. This decrease was due primarily to a reduction in personnel expenses, shareholders and other corporate expenses, insurance and other office expenses, facilities and travel expenses offset by increased losses on investments held for trading and negative gross margins on lumber sales.

The loss and comprehensive loss for the six months ended September 30, 2009 was $633,000 ($0.02 per common share) compared to $1,321,000 ($0.04 per common share) for the same period in the prior year, a decrease of $688,000. This decrease was due primarily to a reduction in personnel related expenses and facility expenses.

Liquidity and Capital Resources

At September 30, 2009 the Company's cash and cash equivalents totalled $1,748,000 compared to $1,234,000 at March 31, 2009. Working capital at September 30, 2009 was $2,244,000 compared to $1,647,000 at March 31, 2009. Non-cash working capital at September 30, 2009 was $496,000 compared to $413,000 at March 31, 2009.

The Company used $474,000 to fund operations for the six months ended September 30, 2009 compared with a use of funds of $1,249,000 for the corresponding period of the prior year.

Cash from financing activities was $1,157,000 for the six months ended compared to $277,000 for same period last year. Cash from financing activities in the current period relates to net proceeds of $782,155 from a non brokered private placement completed on August 26, 2009 and the exercise of warrants for proceeds of $375,000 in August 2009.

Cash used in investing activities for the six months ended September 30, 2009 was $169,000 compared with cash from investing activities of 12,000 in the corresponding period.

Subsequent to the quarter end, on November 13, 2009, the Company closed a non-brokered private placement in escrow. Under the terms of the private placement the Company issued 10,000,000 units for gross proceeds of $3,000,000. Each Unit consists of one common share and one warrant to purchase a common share and the units were priced at $0.30 per unit. Each warrant entitles the holder to acquire one common share for a price of $0.60 up until the third anniversary of the private placement closing. This private placement will be held in escrow until EACOM exercises its option to acquire the Big River sawmill, or alternatively, purchases another asset in the forestry sector, in each case subject to TSX-Venture Exchange approval. Under the terms of the escrow, EACOM must receive the TSX-Venure Exchange approval on or before December 31, 2009 or the participants in the private placement may have their funds returned.

Also, subsequent to the quarter end the Company issued 9,625,000 common shares for proceeds of $2,406,250 related to the exercise of outstanding warrants. The warrants exercised were issued as part of the non-brokered private placement that closed on August 26, 2009.

Statements in this news release other than historical information are forward-looking statements subject to risks and uncertainties. Actual results could differ materially depending on factors such as the availability of resources, the timing and effects of regulatory actions, the strength of competition, the outcome of litigation and the effectiveness of patent protection. Additional information regarding risks and uncertainties is set forth in the current MD&A for EACOM Timber Corporation on file with the Canadian Securities Commissions.



EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Balance Sheets
(Unaudited)

September 30, March 31,
2009 2009
------------------------------
Assets

Current assets
Cash and cash equivalents $ 1,747,577 $ 1,233,513
Restricted cash and short term investment 241,543 130,000
Investments held for trading 143,600 89,467
Other receivables 86,146 101,097
Trade accounts receivable 126,612 263,052
Inventory 85,453 74,469
Prepaid expenses 200,468 99,686
------------------------------
2,631,399 1,991,284

Property and equipment - 13,167

------------------------------
$ 2,631,399 $ 2,004,451
------------------------------
------------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 387,434 $ 344,715
------------------------------
387,434 344,715
------------------------------

Shareholders' equity

Capital stock 1,553,449 141,349,555

Contributed surplus 690,516 2,439,104

Deficit - (142,128,923)
------------------------------
2,243,965 1,659,736

------------------------------
$ 2,631,399 $ 2,004,451
------------------------------
------------------------------


EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Statements of Loss, Comprehensive Loss and Deficit
(Unaudited)

For the Three Months Ended For the Six Months Ended
----------------------------- -----------------------------
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------- -------------- ------------- --------------
Revenues
Sales $ 976,961 $ - $ 2,039,440 $ -
Cost of Sales (1,028,762) - (2,039,852) -
------------- -------------- ------------- --------------
Gross Profit (51,801) - (412) -

Expenses

Loss on
investments
held for
trading 70,479 - 45,227 -
Personnel 85,288 120,861 156,440 241,814
Stock based
compensation 35,589 27,891 60,217 29,224
Professional
fees 107,583 108,444 162,028 191,841
Shareholder
and other
corporate 18,483 77,885 51,095 118,603
Insurance and
other office 59,695 90,767 107,803 143,023
Facilities 22,866 65,743 50,085 174,337
Travel 45,541 67,420 65,917 77,426
Amortization
of property,
equipment,
patents and
licenses 6,583 6,583 13,166 13,166
Employee
terminations - - - 376,972
------------- -------------- ------------- --------------
452,107 565,594 711,978 1,366,406
------------- -------------- ------------- --------------

Loss from
operations (503,908) (565,594) (712,390) (1,366,406)
------------- -------------- ------------- --------------

Other income 74,676 11,541 79,246 33,658

Gain on sale
of biopharma-
ceutical assets - - - 12,004

------------- -------------- ------------- --------------
Loss and
comprehensive
loss for the
period (429,232) (554,053) (633,144) (1,320,744)

Deficit,
beginning of
period (142,332,835) (141,025,296) (142,128,923) (140,258,605)

Elimination of
Deficit 142,762,067 - 142,762,067 -
------------- -------------- ------------- --------------

Deficit, end
of period $ - $ (141,579,349) $ - $ (141,579,349)
------------- -------------- ------------- --------------
------------- -------------- ------------- --------------

Basic and
diluted loss
per common
share $ (0.01) $ (0.02) $ (0.02) $ (0.04)
------------- -------------- ------------- --------------
------------- -------------- ------------- --------------

Weighted
average number
of common
shares
outstanding 41,817,083 34,262,735 39,195,617 33,533,049
------------- -------------- ------------- --------------
------------- -------------- ------------- --------------


EACOM Timber Corporation
(Formerly Inflazyme Pharmaceuticals Ltd.)
Consolidated Statements of Cash Flows
(Unaudited)

For the Three Months Ended For the Six Months Ended
------------------------ -------------------------
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
------------------------ -------------------------

Cash flows from
operating activities
Loss for the period $ (429,232) $ (554,053) $ (633,144) $ (1,320,744)
Items not affecting
cash:
Amortization of
property, equipment,
patents and licenses 6,583 6,583 13,166 13,166
Gain on sale of
biopharmaceutical
assets - - - (12,004)
Gain (loss) on sale of
investments held for
trading 7,476 - (27,446) -
Unrealized (gain)/loss
on investments held for
trading 63,003 - 72,673 -
Option fee received
for Big River sawmill (70,000) - (70,000) -
Stock-based
compensation 35,589 27,891 60,217 29,224
------------------------ -------------------------
(386,581) (519,579) (584,534) (1,290,358)

Changes in non-cash
working capital
Interest receivable (932) 3,775 (932) 825
Other receivables 44,807 8,265 15,883 62,571
Trade accounts
receivable 32,959 - 136,440 -
Prepaid expenses 111,119 37,052 39,213 42,040
Inventory 158,798 - (10,984) -
Accounts payable and
accrued liabilities 13,441 (187,085) (68,824) (64,501)
------------------------ -------------------------
Changes in non-cash
working capital 360,192 (137,993) 110,796 40,935
------------------------ -------------------------
(26,389) (657,572) (473,738) (1,249,423)
------------------------ -------------------------

Cash flows from
financing activities
Proceeds from private
placement 800,000 300,000 800,000 300,000
Finance costs for
private placement (17,845) (23,375) (17,845) (23,375)
Proceeds from exercise
of Warrants 375,000 - 375,000 -
------------------------ -------------------------
1,157,155 276,625 1,157,155 276,625

Cash flows from
investing activities
Purchase of investments
held-for-trading (16,519) - (56,191) -
Proceeds on sale of
investments held for
trading 8,080 - 68,381 -
Increase in restricted
cash and short term
investment (111,543) - (111,543) -
Option fee paid for Big
River sawmill (140,000) - (140,000) -
Option fee received for
Big River sawmill 70,000 70,000
Proceeds from sale of
biopharmaceutical
assets - - - 12,003
------------------------ -------------------------
(189,982) - (169,353) 12,003

------------------------ -------------------------
Increase/(Decrease) in
cash and cash
equivalents 940,784 (380,947) 514,064 (960,795)

Cash and cash
equivalents, beginning
of period 806,793 2,667,250 1,233,513 3,247,098
------------------------ -------------------------

Cash and cash
equivalents, end of
period $ 1,747,577 $ 2,286,303 $ 1,747,577 $ 2,286,303
------------------------ -------------------------
------------------------ -------------------------

Supplemental disclosure
of cash flow
information
Interest received 8,314 15,316 8,314 33,005


Contact Information

  • EACOM Timber Corporation
    Michael Liggett
    C.F.O.
    1.800.315.3660/604.279.8511
    604.279.8711 (FAX)