NexgenRx Inc.
TSX VENTURE : NXG

NexgenRx Inc.

April 15, 2011 17:50 ET

NexgenRx Announces 2010 Annual Results

TORONTO, ONTARIO--(Marketwire - April 15, 2011) - NEXGENRX INC. ("NexgenRx" or the "Company") (TSX VENTURE:NXG) is pleased to announce its 2010 annual results.

Revenue from transaction fees for the year ended December 31, 2010 was $3,524,353, representing an increase of 20% over the prior year.

The net loss for the year was $807,017 ($0.02 per common share) compared with a loss of $2,044,993 ($0.05 per common share) in the prior year.

The Company had several significant accomplishments during 2010 which were focused on cost reductions, new business opportunities and a dramatic balance sheet improvement.

The licensor of a piece of the software used by the Company for its core business operations was placed into receivership in 2006. By agreement, the Company obtained a copy of the licensed software source code and related documentation from the escrow agent as of that date. It was determined with our professional advisors this year that the 2009 Financial Statements should include a reversal of the amounts owing in respect of the computer software license. An adjustment has been made to reflect this and to remove: (i) the software liability in the amount of $2,996,629; and (ii) $249,000 from the accounts payable balance that related to the software obligation. The adjustment to opening deficit totaled $3,245,629.

In addition, at the end of November the Company extinguished $2,000,000 of 8% convertible debt as a result of a portion converting to equity and repayment of the remaining balance. The repayment was funded by a private equity placement completed in November 2010. The remaining $500,000 convertible debenture was renegotiated to extend the maturity date and modify the interest rate to prime plus one.

"We are pleased to advise that the cumulative effect of these events resulted in eliminating over $5.0 million of debt and current liabilities from our Balance Sheet and a 90% reduction in our debt servicing load." stated Ron Loucks, President and CEO.

The Company's audited Financial Statements and Notes, the Company's Management's Discussion and Analysis, and all additional required financial disclosure in respect of the year ended December 31, 2010, are available at www.sedar.com.

About NexgenRx

NexgenRx is a growing health benefits management company engaged in the design, management and administration of health benefit plans offered by employers and other plan sponsors for the benefit of their employees and plan members. More information on NexgenRx can be found at www.nexgenrx.com.

Caution Regarding Forward-Looking Statements – This news release contains certain forward looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.

Contact Information

  • NexgenRx Inc.
    Ronald C. Loucks
    President & CEO
    416.695.3393 x 801

    NexgenRx Inc.
    Taba Merrikh
    Director of Finance
    416-695-3393 x 502
    www.nexgenrx.com