Bradmer Pharmaceuticals Inc.
TSX VENTURE : BMR.H

Bradmer Pharmaceuticals Inc.

November 08, 2011 16:02 ET

Bradmer Announces Third Quarter 2011 Operational and Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2011) - Bradmer Pharmaceuticals Inc. (TSX VENTURE:BMR.H) ("Bradmer" or the "Company") today announced its third quarter 2011 operational and financial results.

Operational Highlights

On July 15, 2011 the Company announced that P1 Energy Corp. and Bradmer had 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. In October, P1 Energy has reimbursed the Company $180,000 for legal and other fees incurred during the due diligence.

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 September 30, 2011, the Company incurred a net loss of $201,000 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 $70,000 or $0.00 per common share for the three months ended September 30, 2010 based on the weighted average outstanding shares of 18,000,689. The net loss in 2011 is attributable to a combination of one-time general and administrative expenses and a large foreign exchange loss.

Research and development expenses totaled $2,000 for patent and consulting fees in the three months ended September 30, 2011, compared to $10,000 in fiscal 2010. Expenses in 2010 consisted of patent and consulting fees of $5,000 and drug storage costs of $5,000.

General and administrative expenses were $135,000 in the third quarter of 2011 compared to $77,000 in the prior year. In 2011, consulting fees were $41,000, legal fees amounted to $24,000, primarily related to the annual and special meeting of shareholders, and directors and officers' liability insurance was $32,000. Stock-based compensation for the award of stock options in the quarter was $22,000. Major expenses in 2010 consisted of consulting and legal fees of $39,000, insurance premiums of $15,000 and facilities costs of $13,000.

Interest income in both quarters was less than $1,000, due to low interest rates. The Company had a $64,000 foreign exchange loss in the 2011 period compared with a $17,000 gain in 2010 due to the decline in value of the Canadian dollar in 2011 compared to an increase in the Canadian dollar in the same period of 2010.

For the nine months ended September 30, 2011, Bradmer recorded a net loss of $319,000 or $0.02 per common share based on the weighted average outstanding shares of 19,659,726 during the period, compared to a net loss of $339,000 or $0.03 per common share for the nine months ended September 30, 2010 based on the weighted average outstanding shares of 13,005,120. The reduced loss in 2011 is attributable to the $46,000 reduction in general and administrative expenses in 2011, partially offset by the larger foreign exchange loss this year.

Research and development expenses totaled $28,000 in the nine months ended September 30, 2011, compared to $40,000 in fiscal 2010. Consulting fees were $12,000 and patent fees were $15,000. These costs were incurred in connection with the termination of the Duke License Agreement. Expenses in 2010 consisted primarily of patent and consulting fees and drug storage costs.

General and administrative expenses were $253,000 in the first nine months of 2011 compared to $300,000 in the prior year period. In 2011, legal fees amounted to $208,000, of which $157,000 was incurred in connection with the P1 Energy transaction, consulting fees were $72,000 and insurance premiums were $68,000. The recovery of P1 Energy transaction costs partially offset these expenses. Stock-based compensation was $22,000 and stock exchange listing fees were $12,000. Major expenses in 2010 consisted of consulting and legal fees, insurance premiums and stock exchange listing fees.

At September 30, 2011, Bradmer had working capital of $1,194,000, as compared to $1,491,000 at December 31, 2010. The Company had available cash of $1,001,000 at September 30, 2011, compared to cash of $1,525,000 at December 31, 2010. The Company also had $217,000 in amounts receivable, all of which was collected in October 2011.

As at November 8, 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
September 30, December 31,
2011 2010
Assets
Current assets
Cash $ 1,000,556 $ 1,524,972
Amounts receivable 217,468 10,169
Prepaid expenses - 7,530
$ 1,218,024 $ 1,542,671
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 24,300 $ 51,929
Shareholders' equity
Share capital 2,176,685 2,176,685
Contributed surplus 2,314,894 1,500,965
Warrants 22,995 814,679
Accumulated deficit (3,320,850 ) (3,001,587 )
1,193,724 1,490,742
$ 1,218,024 $ 1,542,671

Approved on behalf of the Board:

Alan M. Ezrin, Director

Charles Lilly, Director

BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Comprehensive Loss
Three month and nine month periods ended September 30
(All amounts expressed in United States dollars)
Nine Months Ended Three Months Ended
September 30 September 30
2011 2010 2011 2010
Expenses
Research and development $ 27,826 $ 39,936 $ 2,063 $ 10,337
General and administrative 253,097 299,590 134,920 76,888
280,923 339,526 136,983 87,225
Other Income
Interest (453 ) (793 ) (113 ) (256 )
Foreign exchange (gain)/loss 38,793 512 63,990 (17,422 )
38,340 (281 ) 63,877 (17,678 )
Net loss and total comprehensive loss for the period $ (319,263 ) $ (339,245 ) $ (200,860 ) $ (69,547 )
Net loss per share
Basic and diluted $ (0.02 ) $ (0.03 ) $ (0.01 ) $ (0.00 )
Weighted average number of shares outstanding 19,659,726 13,005,120 19,659,726 18,000,689
BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Changes in Shareholders' Equity
Nine month periods ended September 30, 2011 and 2010
(All amounts expressed in United States dollars)
Total
Share capital Contributed shareholders'
Number Value surplus Warrants Deficit equity
Balance, January 1, 2010 6,026,627 $ 1,076,755 $ 1,496,503 $ 783,988 $ (2,546,821 ) $ 810,425
Issuance of shares 13,633,099 1,229,648 - - - 1,229,648
Share issue costs - (129,718 ) - - - (129,718 )
Issuance of warrants - - - 30,691 - 30,691
Share-based compensation - - 4,089 - - 4,089
Net loss for the period - - - - (339,245 ) (339,245 )
Balance, September 30, 2010 19,659,726 $ 2,176,685 $ 1,500,592 $ 814,679 $ (2,886,066 ) $ 1,605,890
Balance, January 1, 2011 19,659,726 $ 2,176,685 $ 1,500,965 $ 814,679 $ (3,001,587 ) $ 1,490,742
Share-based compensation - - 22,245 - - 22,245
Expiry of warrants - - 791,684 (791,684 ) - -
Net loss for the period - - - - (319,263 ) (319,263 )
Balance, September 30, 2011 19,659,726 $ 2,176,685 $ 2,314,894 $ 22,995 $ (3,320,850 ) $ 1,193,724
BRADMER PHARMACEUTICALS INC.
Unaudited Condensed Statements of Cash Flows
Nine month periods ended September 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 $ (319,263 ) $ (339,245 )
Adjustments for:
Share-based compensation 22,245 4,089
Change in non-cash operating items (227,398 ) (58,385 )
(524,416 ) (393,541 )
Financing activities:
Proceeds from issuance of common shares, net of share issue costs - 1,130,621
(Decrease)/increase in cash (524,416 ) 737,080
Cash, beginning of period 1,524,972 860,460
Cash, end of period $ 1,000,556 $ 1,597,540

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