TORONTO, May 25, 2015 /CNW/ - Amorfix Life Sciences, a product development company focused on diagnostics and therapeutics for misfolded protein diseases, today announced its operational and financial results for the three months ended March 31, 2015.
- On March 16, 2015 the Company announced that its Board of Directors has formally authorized the Company to review all strategic alternatives available to it. The Company's management has been charged, among other things, with the responsibility for exploring alternative ways to maximize shareholder value, including transactions involving the sale of all or part of the assets of the Company. The Company had numerous discussions with potential investors in recent months, many of whom ultimately declined to invest based on a variety of factors, citing a reluctance to invest in a public biotechnology company at an early stage of the Company's progress toward clinical trials, among other reasons. The Board of Directors is and will consider any and all strategic proposals, including proposals that would transfer the Company's assets into a privately held entity in such a manner that would provide the Company and its shareholders with a continuing equity stake in the private entity's business, although the Board of Directors has not ruled out any strategic alternatives at this stage.
- On April 23, 2015, the company announced it had arranged a secured bridge loan in the amount of US$40,000 (the "Bridge Loan") with four directors of the Corporation (the "Lenders"). The Bridge Loan will serve as interim financing to support the working capital requirements of the Corporation. The Bridge Loan will accrue interest at 2% per annum and will be secured by the assets of the Corporation. The accrued interest and the principal amount will become due at the end of the term, which will end on the earlier of 3 months from closing and the date by which the Corporation has raised, cumulatively, equity capital of at least US$1,200,000. The Corporation may prepay the Bridge Loan at any time without any penalty.
Results of Operations – Three months ended March 31, 2015 and 2014
The net loss for the three months ended March 31, 2015 was $428,005 compared to a net loss of $750,837 for the three months ended March 31, 2014. The decreased net loss in the current period results mainly from lower stock option compensation and lower research costs for its Alzheimer's disease diagnostic program.
For the three months ended March 31, 2015 contract research revenue was $0 compared to $8,354 in the comparable period. Sales and service revenue were $11,400 in the current period as compared with $43,512 in the comparable period.
Research and development expenses for the three months ended March 31, 2015 were $232,360 as compared to $343,143 in the three month ended March 31, 2014. The decrease in expenditures in the current period related mostly to lower salary and stock option compensation.
General and administrative expenses for the three months ended March 31, 2015 were $97,045 as compared to $459,560 in the three months ended March 31, 2014. The decrease in expenditures in the current period resulted mainly from lower stock option compensation and lower investor relations activities.
The Company incurred a loss of $428,005 for the three month-period ended March 31, 2015 and has a deficit of $ 36,854,349 as at March 31, 2015, and as at March 31, 2015, had working capital deficiency of $708,059. At present, the Company's cash resources are expected to be fully depleted imminently. These circumstances may cast significant doubt as to the ability of the Company to continue as a going concern. The Company is actively pursuing financing and strategic alternatives to further develop certain of the Company's scientific initiatives, but there is no assurance that these initiatives will be successful, timely or sufficient. In addition, the Company is considering other strategic initiatives to maximize long-term value including selling all or a portion of the Company's assets or proposals that would transfer the Company's assets into a privately held entity in such a manner that would provide the Company and its shareholders with a continuing equity stake in the private entity's business.
The Company intends to continue to maintain its core neurodegenerative disease assets for ALS and Alzheimer's disease until one or more strategic transactions are consummated. For ALS, these assets include therapeutic antibodies that block misfolded SOD1 and a simple blood test diagnostic for early detection of the disease. For Alzheimer's disease, the company has developed a 'best in class' diagnostic that can accurately identify patients with early-stage disease.
No timetable has been set for the Company's process for reviewing strategic alternatives. No decision has been made to enter into any transaction at this time, and there can be no assurance that the Company will enter into such a transaction in the future. Such a transaction, if one were to occur, could require formal shareholder approval, in which case detailed proxy or other solicitation material would be made available to shareholders. There is no assurance that this strategic alternatives review will result in Amorfix changing its current business plan, pursuing a particular transaction, or completing any such transaction.
The Company currently intends to retain its listing as a public company on the TSX unless a so-called "going-private transaction" is consummated. There can be no assurance that any such transaction will be consummated
Additional information about the Company, including the MD&A and financial results may be found on SEDAR at www.sedar.com.
Amorfix Life Sciences Ltd. (TSX: AMF) is an early-stage company developing specific diagnostics and antibody therapeutics targeting misfolded proteins in neurodegenerative disease. Amorfix utilizes its computational discovery platform, ProMISTM, to predict novel targets known as Disease Specific Epitopes (DSEs) on the molecular surface of misfolded proteins. Using this 'Precision Medicine' approach, Amorfix is developing novel antibody therapeutics and specific companion diagnostics for Alzheimer's disease and ALS. In addition, Amorfix has developed two proprietary technologies to specifically identify very low levels of misfolded proteins in a biological sample: Epitope ProtectionTM and AMFIATM, an ultra-sensitive dual-bead immunoassay. Use of these technologies has generated a cerebrospinal fluid (CSF) screening test for Alzheimer's disease (AD), and an ultra-sensitive method for detecting the hallmark of AD, aggregated beta-Amyloid, in brain tissue, CSF and blood from animal models of AD. For further information about Amorfix, please visit www.amorfix.com.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This information release may contain certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Amorfix Life Sciences Ltd.
For further information: Dr. Robert Gundel, President and Chief Executive Officer, Amorfix Life Sciences Ltd., Tel: (416) 847-6957, Fax: (416) 847-6899, [email protected]; Warren Whitehead, Chief Financial Officer, Amorfix Life Sciences Ltd., Tel: (416) 644-7358, Fax: (416) 847-6899, [email protected]