Bradmer Pharmaceuticals Inc.
TSX VENTURE : BMR.H

Bradmer Pharmaceuticals Inc.

June 24, 2011 10:55 ET

Bradmer Announces First Quarter 2011 Operational and Financial Results

TORONTO, ONTARIO--(Marketwire - June 24, 2011) - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") (TSX VENTURE:BMR.H) today announced its first quarter 2011 operational and financial results.

Operational Highlights

Bradmer is continuing to negotiate the terms of a definitive agreement with P1 Energy Corp. in respect of their previously announced business combination. Completion of the transaction remains subject to a number of conditions.

The Company terminated its license agreement with Duke University effective March 31, 2011. Pursuant to the license agreement, Bradmer licensed certain patent rights relating to a drug, termed Neuradiab®, for the treatment of glioblastoma multiforme, the most common and advanced form of primary brain cancer. Bradmer's Phase III clinical trial for Neuradiab was suspended in March 2009 and Bradmer had not pursued any activities relating to the clinical development of Neuradiab since that date.

Financial Results

Amounts in US dollars, unless specified otherwise, and results expressed in accordance with International Financial Reporting Standards ("IFRS").

For the three months ended March 31, 2011, the Company recorded a net loss of $166,000 or $0.01 per common share based on the weighted average outstanding shares of 19,659,726 during the quarter, compared to a net loss of $112,000 or $0.02 per common share for the three months ended March 31, 2010 based on the weighted average outstanding shares of 6,491,624. The increased loss in 2011 is attributable to the legal and due diligence expenses related to the proposed P1 Energy Transaction.

Research and development expenses totalled $19,000 in the three months ended March 31, 2011, compared to $16,000 in fiscal 2010. Consulting fees were $11,000 and patent fees were $7,000. These costs were incurred in connection with the termination of the Duke license agreement. Expenses in 2010 consisted primarily of patent and consulting fees of $10,000 and drug storage costs of $5,000.

General and administrative expenses were $165,000 in the first quarter of 2011 compared to $108,000 in the prior year. In 2011, legal fees amounted to $92,000, of which $70,000 was incurred in connection with the P1 Energy transaction, consulting fees were $31,000 and insurance premiums were $25,000. Major expenses in 2010 consisted of consulting fees of $46,000, legal fees of $21,000 and insurance premiums of $16,000. The Chief Executive Officer continues to serve on a consultancy basis without cash compensation and the Chief Financial Officer continues to serve on a consultancy basis and receives an hourly fee.

The Company had an $18,000 foreign exchange gain in the 2011 period compared with a $10,000 gain in 2010 due, in both periods, to the increase in value of the Canadian dollar.

At March 31, 2011, Bradmer had working capital of $1,366,000, as compared to $1,491,000 at December 31, 2010. The Company had cash of $1,403,000 at March 31, 2011, compared to $1,525,000 at December 31, 2010. The decrease was due to the operating loss incurred in the quarter.

As at June 23, 2011, Bradmer has 19,659,726 common shares, warrants to purchase 621,128 common shares and options to purchase 499,000 common shares outstanding. The 2,893,435 investor warrants expired on June 22, 2011.

Additional information about Bradmer, including the MD&A and financial results may be found on SEDAR at www.sedar.com.

Bradmer's common shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state regulatory agency in the United States. The resale or transfer by a U.S. investor of such common shares of Bradmer Pharmaceuticals Inc. is subject to the requirements of Rule 904 of Regulation S of the Securities Act or such other applicable exemption thereunder, and other applicable state securities laws.

Except for historical information, this news release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Financial Position
(All amounts expressed in United States dollars)
As at
March 31,December 31,January 1,
Note201120102010
Assets
Current assets
Cash$1,402,553$1,524,972$860,460
Amounts receivable10,74710,1691,944
Prepaid expenses-7,53014,246
$1,413,300$1,542,671$876,650
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities 9$88,386$51,929$66,225
Shareholders' equity
Share capital42,176,6852,176,6851,076,755
Contributed surplus71,500,9651,500,9651,496,503
Warrants814,679814,679783,988
Accumulated deficit(3,167,415)(3,001,587)(2,546,821)
1,324,9141,490,742810,425
$1,413,300$1,542,671$876,650
BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Comprehensive Loss
(All amounts expressed in United States dollars)
Three month periods ended March 31, 2011 and 2010
Note20112010
Expenses
Research and development$18,820$15,513
General and administrative165,482107,549
184,302123,062
Other income
Interest(202)(247)
Foreign exchange gain(18,272)(10,386)
(18,474)(10,633)
Loss and total comprehensive loss for the period$(165,828)$(112,429)
Loss per share
Basic and diluted8$(0.01)$(0.02)
Weighted average number of shares outstanding19,659,7266,491,624
BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Changes in Shareholders' Equity
(All amounts expressed in United States dollars)
Three month periods ended March 31, 2011 and 2010
Total
Share capitalContributedshareholders'
NumberValuesurplusWarrantsDeficitequity
Balance, January 1, 20106,026,627$1,076,755$1,496,503$783,988$(2,546,821)$810,425
Issuance of shares8,369,947761,622---761,622
Share issue costs-(84,063)---(84,063)
Issuance of warrants---11,498-11,498
Share-based compensation--1,463--1,463
Net loss for the period----(112,429)(112,429)
Balance, March 31, 201014,396,574$1,754,314$1,497,966$795,486$(2,659,250)$1,388,516
Balance, January 1, 201119,659,726$2,176,685$1,500,965$(147,699)$(3,001,587)$1,490,742
Net loss for the period----(165,828)(165,828)
Balance, March 31, 201119,659,726$2,176,685$1,500,965$(147,699)$(3,167,415)$1,324,914
BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Cash Flows
(All amounts expressed in United States dollars)
Three month periods ended March 31, 2011 and 2010
20112010
Cash provided by (used in)
Operating activities:
Net loss for the period$(165,828)$(112,429)
Adjustments for:
Share-based compensation-1,463
Change in non-cash operating items43,409(96,113)
(122,419)(207,079)
Financing activities:
Proceeds from issuance of common shares, net of share issue costs of $84,063-689,057
(Decrease)/increase in cash(122,419)481,978
Cash, beginning of period1,524,972860,460
Cash, end of period$1,402,553$1,342,438

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