TORONTO, ONTARIO--(Marketwire - Aug. 25, 2011) - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") (TSX VENTURE:BMR.H) today announced its second quarter 2011 operational and financial results.
Operational Highlights
On July 15, 2011 the Company announced that P1 Energy Corp. and Bradmer had mutually agreed to terminate the letter of intent between the parties relating to the proposed reverse take-over transaction. The directors and officers of Bradmer intend to seek out new opportunities considered to be in the best interests of Bradmer and its shareholders.
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 June 30, 2011, the Company recorded net income of $47,000 or $0.00 per common share based on the weighted average outstanding shares of 19,659,726 during the quarter, compared to a net loss of $157,000 or $0.01 per common share for the three months ended June 30, 2010 based on the weighted average outstanding shares of 14,396,574. The net income in 2011 is attributable to the reimbursement of legal and due diligence expenses related to the terminated P1 Energy transaction, some of which were incurred in the first quarter of 2011.
Research and development expenses totalled $7,000 in the three months ended June 30, 2011, compared to $14,000 in fiscal 2010. Consulting fees were $1,000 and patent fees were $6,000. These costs were incurred in connection with the termination of the Duke License Agreement.
General and administrative expense recoveries were $47,000 in the first quarter of 2011 compared to expenses of $115,000 in the prior year. In 2011, legal fees amounted to $92,000, of which $87,000 was incurred in connection with the P1 Energy transaction, consulting fees were $56,000 and insurance premiums were $11,000. The recovery of P1 transaction costs was $212,000.
The Company had a $7,000 foreign exchange gain in the 2011 period compared with a $28,000 loss in 2010 due to the increase in value of the Canadian dollar in 2011 compared to a decline in the Canadian dollar in the same period of 2010.
For the six months ended June 30, 2011, the Company recorded a net loss of $118,000 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 $270,000 or $0.03 per common share for the six months ended June 30, 2010 based on the weighted average outstanding shares of 10,466,000. The reduced loss in 2011 is attributable to the reimbursement of legal and due diligence expenses related to the terminated P1 Energy transaction.
Research and development expenses totalled $26,000 in the six months ended June 30, 2011, compared to $30,000 in fiscal 2010. Consulting fees were $12,000 and patent fees were $13,000. These costs were incurred in connection with the termination of the Duke License Agreement
General and administrative expenses were $118,000 in the first half of 2011 compared to $223,000 in the prior year. In 2011, legal fees amounted to $184,000, of which $70,000 was incurred in connection with the P1 Energy transaction, consulting fees were $87,000 and insurance premiums were $36,000. The recovery of P1 Energy transaction costs partially offset these expenses.
The Company had a $25,000 foreign exchange gain in the 2011 period compared with an $18,000 loss in 2010 due to the increase in value of the Canadian dollar in 2011 compared to a decline in the Canadian dollar in the same period of 2010.
At June 30, 2011, Bradmer had working capital of $1,372,000, as compared to $1,491,000 at December 31, 2010. The Company had available cash of $1,323,000 at June 30, 2011, compared to cash of $1,525,000 at December 31, 2010.
As at August 25, 2011, the Company has 19,659,726 common shares, warrants to purchase 418,497 common shares and options to purchase 1,955,000 common shares outstanding.
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 |
| June 30, | December 31, | |||||||
| Note | 2011 | 2010 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,323,029 | $ | 1,524,972 | ||||
| Amounts receivable | 246,749 | 10,169 | ||||||
| Prepaid expenses | - | 7,530 | ||||||
| $ | 1,569,778 | $ | 1,542,671 | |||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | 9 | $ | 197,439 | $ | 51,929 | |||
| Shareholders' equity | ||||||||
| Share capital | 4 | 2,176,685 | 2,176,685 | |||||
| Contributed surplus | 7 | 2,284,953 | 1,500,965 | |||||
| Warrants | 6 | 30,691 | 814,679 | |||||
| Accumulated deficit | (3,119,990 | ) | (3,001,587 | ) | ||||
| 1,372,339 | 1,490,742 | |||||||
| $ | 1,569,778 | $ | 1,542,671 | |||||
| Nature of Operations (note 1) | ||||||||
| See accompanying notes to condensed financial statements. | ||||||||
| Approved on behalf of the Board: | ||||||||
| Alan M. Ezrin, Director | ||||||||
| Charles Lilly, Director | ||||||||
| BRADMER PHARMACEUTICALS INC. |
| Unaudited Condensed Statements of Comprehensive Income (Loss) |
| Three month and six month periods ended June 30 |
| (All amounts expressed in United States dollars) |
| Six Months Ended | Three Months Ended | ||||||||||||
| June 30 | June 30 | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Expenses | |||||||||||||
| Research and development | $ | 25,762 | $ | 29,601 | $ | 6,943 | $ | 14,088 | |||||
| General and administrative | 118,177 | 222,702 | (47,305 | ) | 115,153 | ||||||||
| 143,939 | 252,303 | (40,362 | ) | 129,241 | |||||||||
| Other Income | |||||||||||||
| Interest | (340 | ) | (538 | ) | (138 | ) | (291 | ) | |||||
| Foreign exchange (gain)/loss | (25,197 | ) | 17,934 | (6,925 | ) | 28,320 | |||||||
| (25,536 | ) | 17,396 | (7,063 | ) | 28,029 | ||||||||
| Net Income/(loss) and total comprehensive income/(loss) for the period | $ | (118,403 | ) | $ | (269,699 | ) | $ | 47,425 | $ | (157,270 | ) | ||
| Net Income/(loss) per share | |||||||||||||
| Basic and diluted (Note 8) | $ | (0.01 | ) | $ | (0.03 | ) | $ | 0.00 | $ | (0.01 | ) | ||
| Weighted average number of shares outstanding | 19,659,726 | 10,465,936 | 19,659,726 | 14,396,574 | |||||||||
| See accompanying notes to condensed financial statements. |
| BRADMER PHARMACEUTICALS INC. |
| Unaudited Condensed Statements of Changes in Shareholders' Equity |
| Six month periods ended June 30, 2011 and 2010 |
| (All amounts expressed in United States dollars) |
| Share capital | |||||||||||||||
| Number | Value | Contributed surplus | Warrants | Deficit | Total shareholders' equity | ||||||||||
| Balance, January 1, 2010 | 6,026,627 | $ | 1,076,755 | $ | 1,496,503 | $ | 783,988 | $ | (2,546,821 | ) | $ | 810,425 | |||
| Issuance of shares | 8,369,947 | 761,622 | - | - | - | 761,622 | |||||||||
| Share issue costs | - | (84,063 | ) | - | - | - | (84,063 | ) | |||||||
| Issuance of warrants | - | - | - | 11,498 | - | 11,498 | |||||||||
| Share-based compensation | - | - | 2,945 | - | - | 2,945 | |||||||||
| Net loss for the period | - | - | - | - | (269,699 | ) | (269,699 | ) | |||||||
| Balance, June 30, 2010 | 14,396,574 | $ | 1,754,314 | $ | 1,499,448 | $ | 795,486 | $ | (2,816,520 | ) | $ | 1,232,728 | |||
| Balance, January 1, 2011 | 19,659,726 | $ | 2,176,685 | $ | 1,500,965 | $ | 814,679 | $ | (3,001,587 | ) | $ | 1,490,742 | |||
| Expiry of warrants | - | - | 783,988 | (783,988 | ) | - | - | ||||||||
| Net loss for the period | - | - | - | - | (118,403 | ) | (118,403 | ) | |||||||
| Balance, June 30, 2011 | 19,659,726 | $ | 2,176,685 | $ | 2,284,953 | $ | 30,691 | $ | (3,119,990 | ) | $ | 1,372,339 | |||
| See accompanying notes to condensed financial statements. |
| BRADMER PHARMACEUTICALS INC. |
| Unaudited Condensed Statements of Cash Flows |
| Six month periods ended June 30, 2011 and 2010 |
| (All amounts expressed in United States dollars) |
| 2011 | 2010 | |||||||
| Cash provided by (used in) | ||||||||
| Operating activities: | ||||||||
| Net loss for the period | $ | (118,403 | ) | $ | (269,699 | ) | ||
| Adjustments for: | ||||||||
| Share-based compensation | - | 2,945 | ||||||
| Change in non-cash operating items | (83,540 | ) | (57,022 | ) | ||||
| (201,943 | ) | (323,776 | ) | |||||
| Financing activities: | ||||||||
| Proceeds from issuance of common shares, net of share issue costs of $84,063 | - | 689,057 | ||||||
| (Decrease) /increase in cash | (201,943 | ) | 365,281 | |||||
| Cash, beginning of period | 1,524,972 | 860,460 | ||||||
| Cash, end of period | $ | 1,323,029 | $ | 1,225,741 | ||||
| See accompanying notes to condensed financial statements | |
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact Information:
Paul Van Damme
1-416-987-6113
pvandamme@bradmerpharma.com