Attwell announces second quarter 2009 results



    TORONTO, Aug. 17 /CNW/ - Attwell Capital Inc. (TSXV: AT.H) ("Attwell" or
the "Company") announced today its financial results for the second quarter
ended June 30, 2009.
    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 second quarter of 2009

    -   June 1, 2009 completion of the arrangement agreement and certain
        other agreements providing (the "Arrangement") for:

           -  the transfer of all non-core assets, including all cash and all
              liabilities from Fralex to Attwell;

           -  the exchange by Fralex shareholders of their Fralex common
              shares for common shares of Attwell (and nominal cash
              consideration);

           -  the sale by Attwell of Fralex, including the core CNP assets of
              Fralex, to Baylis Medical Company Inc., a privately-owned
              developer and supplier of medical devices for net proceeds of
              approximately $650,000 (gross proceeds of $900,000 less
              estimated transaction costs of $250,000); and

    -   June 3, 2009 listing of the Company on NEX.

    -   Attwell had $2,024,321 in cash and short-term investments, and
        working capital of $2,231,758, as at June 30, 2009.

    Events subsequent to quarter end

    -   Board recommended that cash up to $0.10 per share be returned to
        shareholders subject to receipt of its investment tax credits
        receivable and provision for the payment of all obligations.
    

    "After the closing the transaction with Baylis on June 1, 2009, our
Management team completed its diligence on available business and technology
options, but was unable to recommend a suitable investment for our
shareholders," said Avi Grewal, President and CEO of Attwell. "We are pleased
to return a portion of our shareholders' capital and we will continue to
explore opportunities to monetize the publicly-listed entity."

    Financial review

    For the three months ended June 30, 2009, the Company reported net income
of $133,734 (or $0.01 income per share) as compared to a net loss of
$1,493,430 with the same period in 2008 (or $0.07 loss per share). For the six
months ended June 30, 2009, the Company reported a decrease in loss of
$2,892,120 to $351,490 (or $0.01 loss per share) as compared to a net loss of
$3,243,610 in 2008 (or $0.15 loss per share). These changes were primarily due
to a reduction in research and development costs from the termination of the
RELIEF trial and gain on sale of assets to Baylis of $900,000.
    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.

    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
    -------------------------------------------------------------------------

                                                       June 30,  December 31,
                                                          2009          2008
                                                             $             $
                                                   --------------------------

    Assets

    Current assets
    Cash                                               872,579       184,064
    Short-term investments                           1,151,742     3,566,280
    Investment tax credits receivable                  305,534       290,000
    Receivables - other                                 43,681        35,089
    Prepaid expenses and deposits                       28,096        31,563
                                                   --------------------------
                                                     2,401,632     4,106,996

    Property and equipment                               5,281        35,579
                                                   --------------------------

                                                     2,406,913     4,142,575
                                                   --------------------------
                                                   --------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities           169,874     1,356,096
                                                   --------------------------

    Shareholders' equity

    Share capital                                   15,292,513    18,030,787
    Warrants                                                 -     1,064,777
    Other equity                                     4,340,944       584,068
    Deficit                                        (17,430,481)  (17,078,991)
    Accumulated other comprehensive income              34,063       185,838
                                                   --------------------------

                                                     2,237,039     2,786,479
                                                   --------------------------

                                                     2,406,913     4,142,575
                                                   --------------------------
                                                   --------------------------


    Attwell Capital Inc.
    Interim Statements of Operations and Comprehensive Loss
    Unaudited
    -------------------------------------------------------------------------
                                  Three months ended       Six months ended
                                             June 30,                June 30,
                                    2009        2008        2009        2008
                                       $           $           $           $
                             ------------------------------------------------

    Expenses
    Research and development           -   1,205,763     250,091   2,581,999
    General and administrative   743,218     343,251   1,116,732     722,293
    Stock-based compensation           -      65,558     183,963     123,896
    Amortization                   5,198      12,260      11,821      30,794
    Write-down of property
     and equipment                17,502           -      17,502           -
    Gain on sale of assets      (900,000)          -    (900,000)          -
    Foreign exchange loss
     (gain)                        3,194     (80,081)   (138,746)    (82,811)
                             ------------------------------------------------

    Income (loss) before
     the undernoted              130,888  (1,546,751)   (541,363) (3,376,171)

    Interest income - net          2,846      53,321      11,523     132,561
                             ------------------------------------------------

    Income (loss) before
     income taxes                133,734  (1,493,430)   (529,840) (3,243,610)
    Income tax recovery                -           -     178,350           -
                             ------------------------------------------------

    Income (loss) for
     the period                  133,734  (1,493,430)   (351,490) (3,243,610)
                             ------------------------------------------------
                             ------------------------------------------------

    Other comprehensive loss
    Unrealized loss on
     available-for-sale
     short-term investments      (25,203)    (98,248)   (151,775)    (13,505)
                             ------------------------------------------------

    Comprehensive income
     (loss) for the period       108,531  (1,591,678)   (503,265) (3,257,115)
                             ------------------------------------------------
                             ------------------------------------------------

    Basic and diluted income
     (loss) per Common Share        0.01       (0.07)      (0.01)      (0.15)
                             ------------------------------------------------
                             ------------------------------------------------
    





For further information:

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

Organization Profile

ATTWELL CAPITAL INC.

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