Attwell announces first quarter results

TORONTO, April 30 /CNW/ - Attwell Capital Inc. (TSXV: AT.H) ("Attwell" or the "Company") announced today its financial results for the first quarter ended March 31, 2010.

Attwell was created on March 27, 2009 to acquire certain assets and all liabilities of Fralex Therapeutics Inc. ("Fralex"), a medical technology company. Attwell currently operates as a holding company.

    
    Operating highlights for the first quarter of 2010

    -   On March 25, 2010, a Special Meeting of Shareholders was held to
        authorize Attwell to reduce the stated capital of the common shares
        by approximately $1.43 million and return this cash to shareholders;
        and

    -   Attwell had $1,693,972 in cash and short-term investments, and
        working capital of $1,620,936, as at March 31, 2010.

    Events subsequent to quarter end

    -   On April 13, 2010, $0.08 per share was returned to Shareholders in
        cash;

    -   The Company has restructured its operations effective April 30, 2010
        by moving premises and reducing operating costs as it continues its
        search for a buyer of the public entity; and

    -   Leslie Auld has resigned as Chief Financial Officer effective
        April 30, 2010.
    

"The return of $1.43 million in cash to the shareholders reflects the Board's and Management's commitment to return value to the shareholders, a goal we will continue to pursue by executing the sale of our public entity," said Avi Grewal, President and CEO of Attwell. "We anticipate that the restructuring of our operations will optimize the use of our cash resources while we search for a buyer."

Financial review

For the period ended March 31, 2010, the Company reported a decrease in loss of $308,591 as compared with the same period in 2009.

Additional information relating to the Company, including detailed financial statements and the MD&A, can be found on SEDAR at www.sedar.com under Attwell Capital Inc.'s company profile (in respect of documents filed on or after June 2, 2009) and under Fralex Therapeutics Inc.'s company profile (in respect of documents filed up to and including June 1, 2009).

A full description of the terms of the Arrangement is provided in the information circular of Fralex dated April 22, 2009, which is available on SEDAR at www.sedar.com under Fralex Therapeutics Inc.'s company profile.

Effective May 1, 2010, the Company's business address is 181 Bay Street, Suite 3620 Toronto, Ontario, M5J 2T3

Certain statements contained in this release containing words like "believe", "intend", "may", "expect", and other similar expressions, are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the Company's forward-looking statements include the following: legal product liability and availability of insurance; risks related to the arrangement including but not limited to post-arrangement tax indemnification of the Company and Baylis; dependence on key personnel and other risk factors identified from time to time in the Company's filings.

Neither the 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 of this release.

    
    Attwell Capital Inc.
    Interim Balance Sheets
    Unaudited
    -------------------------------------------------------------------------

                                                      March 31,  December 31,
                                                          2010          2009
                                                             $             $
                                                   --------------------------

    Assets

    Current assets
    Cash                                               192,492        70,689
    Short-term investments                           1,501,480     1,551,217
    Investment tax credits receivable                        -       217,564
    Receivables - other                                      -        10,382
    Prepaid expenses and deposits                       10,557        17,733
                                                   --------------------------
                                                     1,704,529     1,882,965

    Property and equipment                               1,935         2,648
                                                   --------------------------

                                                     1,706,464     1,885,613
                                                   --------------------------
                                                   --------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities            73,036        75,552
                                                   --------------------------

    Shareholders' equity

    Share capital                                   15,292,513    15,292,513
    Other equity                                     4,340,944     4,340,944
    Deficit                                        (18,000,029)  (17,823,396)
                                                   --------------------------

                                                     1,633,428     1,810,061
                                                   --------------------------

                                                     1,706,464     1,885,613
                                                   --------------------------
                                                   --------------------------



    Attwell Capital Inc.
    Interim Statements of Operations and Comprehensive Loss
    Unaudited
    -------------------------------------------------------------------------

                                                 Three months ended March 31,

                                                          2010          2009
                                                             $             $
                                                   --------------------------

    Expenses
    Research and development                                 -       250,091
    General and administrative                         182,085       373,514
    Stock-based compensation                                 -       183,963
    Amortization                                           712         6,623
    Foreign exchange gain                                    -      (141,940)
                                                   --------------------------

    Loss before the undernoted                        (182,797)     (672,251)

    Interest (expense) income - net                        (46)        8,677

    Gain on sale of property and equipment               6,210             -
                                                   --------------------------


    Loss before income taxes                          (176,633)     (663,574)
    Income tax recovery                                      -       178,350
                                                   --------------------------

    Net loss for the period                           (176,633)     (485,224)
                                                   --------------------------

    Basic and diluted loss per common share              (0.01)        (0.02)
                                                   --------------------------
    

SOURCE ATTWELL CAPITAL INC.

For further information: For further information: Avi Grewal, President and Chief Executive Officer, Attwell Capital Inc., (416) 213-8118 ext. 210, agrewal@attwellcapital.com

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ATTWELL CAPITAL INC.

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