Chemaphor Inc.

Chemaphor Inc.

March 27, 2007 08:53 ET

Chemaphor Announces Financial Results for the Three Months Ended January 31, 2007

OTTAWA, CANADA--(CCNMatthews - March 27, 2007) - Chemaphor Inc. (TSX VENTURE:CFR), a biotechnology research and development company announced its annual financial results for the three months ended January 31, 2007 today.

"Our first quarter of fiscal 2007 was very eventful with the highlight being the signing of an agreement with Eli Lilly's Elanco Animal Health Division", stated Dr. Graham Burton. "The momentum has continued with the recent completion of our private placement. These accomplishments, together with the approximately $2.1 million loan from the Atlantic Canada Opportunities Agency, provide us with the resources to fully commit to vigorously developing the full potential of our oxidized carotenoid nutrisciences program. Our goal is the development of various OxBC product applications, including a non-antibiotic additive in animal feeds for promoting growth and feed efficiency."

Results for the Year Ended October 31, 2006

All amounts are in Canadian dollars unless otherwise noted.

Chemaphor Inc. is a development stage company. The net loss for the three months ended January 31, 2007 was $244,997 ($0.01 per share) compared to a loss of $175,540 ($0.01) for the three month period ended January 31, 2006.

Revenues in the three months ended January 31, 2007 totaled $38,415 compared to $15,233 in the three month period ended January 31, 2006.

Expenses totaled $283,412 in the three months ended January 31, 2007 compared to $190,773 in the three months ended January 31, 2006.

The increased net loss observed in the first quarter of 2007 was primarily caused by increased salaries and benefits attributable to the addition of new staff, research and development contract costs and travel relating to our Nutrisciences program that substantially began in the quarter. The majority of these costs are eligible for funding under the ACOA loan agreement and $52,776 was drawn against those costs in the same period.

As at January 31, 2007, Chemaphor had cash and cash equivalents of $30,192 and a working capital deficit of $228,972. Subsequent to quarter end we received net proceeds of approximately $880,000 (gross proceeds of $1,000,000 less agent's commission of $90,000 and estimated costs of $30,000) upon the completion of a private placement. With the proceeds from the private placement, operations should be sufficiently funded through to at least the end of the fiscal year.

About Chemaphor

Chemaphor Inc. ( uses its core expertise in organic chemistry to develop premium products for the animal health, skin care cosmetics, pharmaceutical and specialty chemical markets. The Company's focus is on two proprietary products, a non pharmaceutical product OxBC and a lead cancer drug compound OCL-1. Chemaphor's goal is to fully exploit its proprietary platform of carotenoid oxidation compounds by finding recognized partners to commercialize its products in multiple, large markets.

Forward-looking statements

This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Chemaphor Inc. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Chemaphor Inc. does not assume any obligation to update or revise them to reflect new events or circumstances. (The TSX-Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.)

Contact Information

  • Groupe Evolution Inc.
    Sylvain Archambault (Investor Relations)
    866-703-4887 (toll free)
    Chemaphor Inc.
    Dr. Graham Burton