Attwell announces shareholder approval of distribution of capital and 2009
annual results
TORONTO, March 26 /CNW/ - Attwell Capital Inc. (TSXV: AT.H) ("Attwell" or the "Company") announced today its shareholders have voted and unanimously approved a special resolution to reduce the stated capital of the Company's common shares by approximately $1.43M (the "Reduction of Stated Capital") and to provide a return of capital in the amount of $0.08 cash per common share to shareholders (the "Return of Capital"). In compliance with the policies of the TSX Venture Exchange, shareholders of record as at the close of business on April 7, 2010 will be entitled to the Return of Capital. It is expected that the cash distribution of $0.08 per share will be paid to such shareholders by April 13, 2010.
The Company also announced its financial results for the year ended December 31, 2009.
Attwell was created on March 27, 2009 to acquire certain assets and all liabilities of Fralex Therapeutics Inc. ("Fralex"), a medical technology company.
Operating highlights for 2009
- June 1, 2009, Fralex, Attwell, and Baylis Medical Inc. ("Baylis"), a privately-owned developer and supplier of medical devices, completed a plan of arrangement (the "Arrangement") whereby, among other things, Attwell acquired certain assets and assumed all liabilities of Fralex. Pursuant to the Arrangement, Fralex shareholders exchanged their shares for common shares of Attwell and Baylis acquired all of the issued and outstanding common shares of Fralex from Attwell in consideration for net proceeds of approximately $650,000 (gross proceeds of $900,000 less estimated transaction costs of $250,000); - June 3, 2009 listing of the Company on NEX; - Management continued to review opportunities to find a purchaser for the sale of the company; and - Attwell had $1,621,906 in cash and short-term investments, and working capital of $1,807,413, as at December 31, 2009. Events subsequent to year end - On February 16, 2010, the Board determined that the preferred method of distributing cash to shareholders would be pursuant to a reduction of the stated capital of its common shares and to provide a return of capital cash distribution in the amount of $0.08 per share; and - On March 25, 2010, at a Special Meeting of Shareholders, shareholders authorized the Reduction of Stated Capital and Return of Capital as recommended by the Board.
"We are pleased to be able to return $1.43 million to the shareholders and continue to focus on executing a sale of our public entity", said Avi Grewal, President and CEO of Attwell.
Financial review
For the year ended December 31, 2009, the Company reported a decrease in loss of $4,545,695 as compared with the same period in 2008 due to the reduction in research and development costs of $3,811,223 resulting from the October 2008 termination of the RELIEF trial and the $900,000 gain on sale of assets pursuant to the Arrangement.
Additional information relating to the Company, including detailed financial statements and the MD&A related thereto, 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.
A full description of the Reduction of Stated Capital and Return of Capital is provided in the information circular of Attwell dated February 22, 2010, which is available on SEDAR at www.sedar.com under the Company's profile.
Certain statements contained in this release containing words like "believe", "intend", "may", "expect", and other similar expressions, are forward-looking statements and include statements relating to sale of the public entity and returning the cash to shareholders, the Company's future financial position, the continued listing of the Company's common shares on the NEX and the nature of the Company's business and operations following the Reduction of Stated Capital and Return of Capital. Such are based on assumptions, estimates, opinions and analysis made by Management in light of its experience, current conditions and its expectations of future developments as well as other factors it believes to be reasonable and relevant. These assumptions include, but are not limited to, those concerning the ability to identify a purchaser for the sale of the Company. Forward-looking statements 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; difficulties in identifying an interested party to purchase Attwell, the uncertainty inherent in attracting capital, dependence on key personnel and other risk factors identified from time to time in the Company's filings. The forward-looking statements contained in this release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein or in any other document filed with securities regulatory authorities, except in accordance with applicable securities laws.
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. Balance Sheets ------------------------------------------------------------------------- December December 31, 2009 31, 2008 $ $ -------------------------- Assets Current assets Cash 70,689 184,064 Short-term investments 1,551,217 3,566,280 Investment tax credits receivable 232,944 290,000 Receivables - other 10,382 35,089 Prepaid expenses and deposits 17,733 31,563 -------------------------- 1,882,965 4,106,996 Property and equipment 2,648 35,579 -------------------------- 1,885,613 4,142,575 -------------------------- -------------------------- Liabilities Current liabilities Accounts payable and accrued liabilities 75,552 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 (17,823,396) (17,078,991) Accumulated other comprehensive income - 185,838 -------------------------- 1,810,061 2,786,479 -------------------------- 1,885,613 4,142,575 -------------------------- -------------------------- Attwell Capital Inc. Statements of Operations and Comprehensive Loss Year ended December 31, 2009 2008 $ $ -------------------------- Expenses Research and development 325,519 4,136,742 General and administrative 1,465,041 1,336,838 Stock-based compensation 183,963 192,888 Amortization 14,454 48,243 Write-down of property and equipment 17,502 - Foreign exchange gain (170,143) (228,647) -------------------------- Loss before the undernoted 1,836,336 5,486,064 Interest income - net (13,581) (194,964) Gain on sale of assets (900,000) - -------------------------- Loss before income taxes 922,755 5,291,100 Income tax recovery (178,350) - -------------------------- Net loss for the year 744,405 5,291,100 -------------------------- Other comprehensive loss (income) Reclassification adjustment for foreign exchange gains included in net loss 185,838 - Unrealized foreign exchange gain on available-for-sale short-term investments - (187,902) -------------------------- Comprehensive loss for the year 930,243 5,103,198 -------------------------- Basic and diluted loss per common share (0.04) (0.24) --------------------------
For further information: For further information: Avi Grewal, President and Chief Executive Officer, Attwell Capital Inc., (416) 213-8118 ext. 210, [email protected]
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