Medwell Capital Reports Second Quarter Results
EDMONTON, Aug. 23, 2013 /CNW/ - Medwell Capital Corp. (TSX-V: MWC) released its financial and operational results for the second quarter ended June 30, 2013.
Second Quarter Highlights
- Subsequent to the second quarter, Medwell Capital increased its investment in Mimetogen and now has ownership of approximately 11.28% of all potentially issued and outstanding shares.
- Also, subsequent to the second-quarter on July 18, 2013 Bausch + Lomb announced that it has entered into an option to license Mimetogen's MIM-D3 Technology for the Treatment of Dry Eye Syndrome (DES). Under the terms of the agreement with Mimetogen, Bausch + Lomb has paid an upfront payment as an option to acquire an exclusive global license on set terms triggered by the availability of top line results from a Phase III study. Should Bausch + Lomb choose to pursue development based on Phase III results, the company will assume all development responsibilities and costs, and also pay development and sales milestones as well as royalty fees to Mimetogen.
- Spectral continues to enroll patients at an accelerated rate and as reported by Spectral as of August 12, 2013, 159 patients have been randomized into Spectral's Phase III Euphrates Trial with a planned, second interim analysis at 184 patients expected in the 4th quarter of this year. Medwell holds 15,287,500 shares of Spectral (approximately 11.5% calculated as a non-diluted basis. Medwell also owns 15,200,000 warrants of Spectral which are excercisable at $0.60 and expire March 2, 2014.
"We are very pleased with Mimetogen's recent transaction with Bausch + Lomb, which creates the potential for a high value, near term exit," said Kevin Giese, President and CEO of Medwell. "We are also pleased with the progress Spectral has made in its clinical program."
Consolidated income from continuing operations of the Corporation for the three months ended June 30, 2013 was $166,000, or $.02 per share compared to a consolidated loss from continuing operations of $841,000 or $.019 per share for the same period last year.
The decrease in net loss was the result of an unrealized gain on investments of $493,000 versus a loss of $110,000 in 2012 and a reduction in operating, general and administration expenditures of $584,000.
The loss from operations was $327,000, before the unrealized gain of $493,000, which was largely a result of the increase in the value of the Spectral shares.
Operating and general expenses decreased $584,000 to $522,000 for the three months ended June 30, 2013 versus $1.1 million for the same period in 2012,
The Company continues to manage costs judiciously and concluded the quarter with $6.254 million in cash and cash equivalent ($.86 per share).
As at June 30, 2013, there were 7,270,071 common shares issued and outstanding and 7,270,071 as at March 31, 2013.
For complete financial results, please see the company's filings at SEDAR or on the company's website (www.medwellcapital.com).
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 this release. This press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, 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 Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Medwell Capital Corp.For further information:
416-815-0700 ext. 238