ThermoCeramix Corporation

TSX VENTURE : TCX


May 29, 2014 19:38 ET

ThermoCeramix Corporation Announces 2014 First Quarter Financial Results

TORONTO, ONTARIO--(Marketwired - May 29, 2014) -

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ThermoCeramix Corporation (TSX VENTURE:TCX) ("TCX" or the "Corporation") (formerly Springrock Capital Inc.), an engineering company engaged in the research and development of heating solutions for industrial, commercial and residential applications, today released its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis of financial position and results of operations ("MD&A") for the three-month period ended March 31, 2014. All amounts are stated in Canadian dollars, unless otherwise noted.

2014 First Quarter and Subsequent Highlights

  • On February 13, 2014, ThermoCeramix, Inc., now a wholly-owned subsidiary of the Corporation, completed the second tranche of a private placement for 650,000 common shares at a price of $0.50 per share for gross proceeds of $325,000.
  • On March 31, 2014, the Corporation completed its acquisition of ThermoCeramix, Inc., as outlined in the filing statement of the Corporation dated March 26, 2014. The acquisition constituted the Corporation's "Qualifying Transaction" (as such term is defined in the policies of the TSX Venture Exchange (the "TSX-V")). Upon receiving final approval of its "Qualifying Transaction from the TSX-V, the Corporation became a Tier 2 Technology Issuer and began trading under the symbol "TCX" on April 7, 2014.
  • On May 5, 2014, the Corporation closed a bought deal private placement offering (the "Offering") with a syndicate of underwriters led by GMP Securities L.P. and including Beacon Securities Ltd. Pursuant to the Offering, the Corporation issued an aggregate of 6,000,000 common shares at a price of $1.25 per share for aggregate gross proceeds of $7,500,000.
  • The Corporation also expanded its team with key hires in business development, manufacturing and research and development.

"We are very pleased with the progress we have made in the first quarter," said Louis Desmarais, Chief Executive Officer of TCX. "Now that the Qualifying Transaction and private placements have been successfully completed, we have a stronger balance sheet and the funds necessary to further develop a range of commercial applications for our platform technology which will allow us to offer unique solutions to a wide range of consumer and industrial needs."

Financial Results for the quarters ended March 31, 2014 and 2013
Quarter ended
March 31, 2014
Unaudited ($)
Quarter ended
March 31, 2013
Unaudited ($)
Net research and development expenses 221,764 105,641
Administrative expenses 798,118 216,952
Listing costs 961,269 -
Other income - (47,579 )
Net interest expense 23,124 26,436
Net loss for the period 2,015,412 297,163
Net loss per share (basic and diluted) 2.24 0.55

Net research and development ("R&D") expenses for the three-months ended March 31, 2014, increased by $116,123, to $221,764, compared to the same period in 2013. This increase was predominantly due to a return to normal operating levels in 2014 in comparison to 2013.

General and administrative expense was $798,118 for the quarter ended March 31, 2014, an increase of $581,166 from that recorded in the prior year period. This increase was primarily attributable to a one-time share-based compensation expense incurred in connection with the Qualifying Transaction, as a consequence of the re-valuation of share options issued, on a one-for-one exchange basis, to the holders of Thermoscience Enercoatings Inc.'s options and higher general and administrative expenses due to a return to normal operating levels in 2014 in comparison to the same period in 2013.

For the quarter ended March 31, 2014, the company incurred $961,269 of listing costs in connection with the Qualifying Transaction. Of this amount, $519,055 pertained to non-cash listing costs expensed, which represented the excess of the fair value of the shares, options and warrants issued by the Corporation over the value of the net monetary assets of Springrock Capital Inc. The remainder pertained to legal and accounting fees incurred.

Other income is composed of R&D service contracts and instrument sales. For the quarter ended March 31, 2014, there was no other income compared to other income of $47,579 in the prior year period, which was composed of limited sales of a specialized heater tube for testing water purity, to a Fortune 500 company, for use in advanced testing systems for water treatment plants.

Net interest expense was $23,124 for the quarter ended March 31, 2014, a decrease of $3,312 compared to the same period in 2013. This decrease was primarily due to higher interest income due to higher average cash balances and lower interest expense on account of a lower average outstanding balance for the tax credit loan, which was repaid in full in February 2014.

Net loss for the quarter ended March 31, 2014 was $2,015,412, up from the loss of $297,163 recorded in the prior year period. The primary contributors to this change were higher general and administrative expenses on account of the Qualifying Transaction (listing costs of $961,269 and non-cash, share-based compensation expense of $328,667) and a return to normal operating levels in 2014, higher net R&D expenses and lower other income.

As at March 31, 2014, TCX held cash and short-term investments of $1,719,121, an increase of $160,525 from the position it had as at December 31, 2013. On February 13, 2014, ThermoCeramix, Inc., now a wholly-owned subsidiary of the Corporation, completed the second tranche of a private placement for 650,000 common shares at a price of $0.50 per share for gross proceeds of $325,000. Subsequent to the end of the first quarter, on May 5, 2014, the Corporation completed a private placement of 6,000,000 common shares at a price of $1.25 per share for aggregate gross proceeds of $7,500,000. These financings have provided sufficient liquidity to support the ongoing business for the foreseeable future.

2014 First Quarter Financial Statements and Management's Discussion and Analysis

Copies of the unaudited interim condensed consolidated financial statements, notes thereto and accompanying MD&A of the Corporation for the three-month period ended March 31, 2014, are available under the Corporation's profile on SEDAR at www.sedar.com.

About ThermoCeramix Corporation

The Corporation is an engineering company incorporated under the Ontario Business Corporations Act. The Corporation is engaged in the research and development of heating solutions for industrial, commercial and residential applications. These solutions utilize TCX™ film heater technology, a patented and proprietary technology for which the Corporation holds a patent portfolio.

Neither TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain information set forth in this press release may contain "forward-looking statements" or "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein may constitute forward-looking statements. Any such forward-looking statements may be identified by words such as "will", "expects", "anticipates", "believes", "projects", "plans" and similar expressions. Any such statements are not guarantees of future performance and undue reliance should not be placed on them. Any such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Corporation's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that any such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • ThermoCeramix Corporation
    Louis Desmarais
    President and Chief Executive Officer
    (450) 641-5461
    info@thermoceramix.com