Attwell Announces Third Quarter 2009 Results

TORONTO, Nov. 5 /CNW/ - Attwell Capital Inc. (TSXV: AT.H) ("Attwell" or the "Company") announced today its financial results for the third quarter ended September 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 third quarter of 2009

    -   Extensive consultation with legal and financial advisors on the most
        efficient method for returning cash to its shareholders;
    -   Management continued to review opportunities for the sale of the
        public entity; and
    -   Attwell had $1,799,748 in cash and short-term investments, and
        working capital of $2,053,393, as at September 30, 2009.
    

"The Management of Attwell remains firmly committed to the goals of returning cash to the shareholders and executing a sale of our public entity", said Avi Grewal, President and CEO of Attwell. "The amount to be returned to the shareholders will be dependent upon the assessment received from the CRA upon completion of their SRED audit. We anticipate this process to be completed shortly and the cash to be returned to shareholders within six months."

Financial review

For the three months ended September 30, 2009, the Company reported net loss of $161,741 (or $0.01 loss per share) as compared to a net loss of $1,558,032 with the same period in 2008 (or $0.07 loss per share). For the nine months ended September 30, 2009, the Company reported a decrease in loss of $4,288,412 to $513,230 (or $0.02 loss per share) as compared to a net loss of $4,801,642 in 2008 (or $0.22 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
    -------------------------------------------------------------------------

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

    Assets

    Current assets
    Cash                                                49,240       184,064
    Short-term investments                           1,750,508     3,566,280
    Investment tax credits receivable                  305,534       290,000
    Receivables - other                                 10,783        35,089
    Prepaid expenses and deposits                       18,929        31,563
                                                   --------------------------
                                                     2,134,994     4,106,996

    Property and equipment                               3,596        35,579
                                                   --------------------------

                                                     2,138,590     4,142,575
                                                   --------------------------
                                                   --------------------------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities            81,601     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                                        (17,592,222)  (17,078,991)
    Accumulated other comprehensive income              15,754       185,838
                                                   --------------------------

                                                     2,056,989     2,786,479
                                                   --------------------------

                                                     2,138,590     4,142,575
                                                   --------------------------
                                                   --------------------------



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

    Expenses
    Research and development           -   1,201,185     250,091   3,783,184
    General and administrative   177,047     306,599   1,293,778   1,028,892
    Stock-based compensation           -      77,181     183,963     201,077
    Amortization                   1,685       9,868      13,506      40,662
    Write-down of property
     and equipment                     -           -      17,502           -
    Gain on sale of assets             -           -    (900,000)          -
    Foreign exchange gain        (15,643)       (261)   (154,389)    (83,072)
                             ------------------------------------------------

    Loss before the
     undernoted                  163,089   1,594,572     704,451   4,970,743

    Interest income - net          1,348      36,540      12,871     169,101
                             ------------------------------------------------

    Loss before income taxes     161,741   1,558,032     691,580   4,801,642
    Income tax recovery                -           -    (178,350)          -
                             ------------------------------------------------

    Loss for the period          161,741   1,558,032     513,230   4,801,642
                             ------------------------------------------------
                             ------------------------------------------------

    Other comprehensive loss
     (income)
    Unrealized loss (income)
     on available-for-sale
     short-term investments       18,309     (78,567)    206,703     (65,062)
                             ------------------------------------------------

    Comprehensive loss for
     the period                  180,050   1,479,465     719,933   4,736,580
                             ------------------------------------------------
                             ------------------------------------------------

    Basic and diluted loss
     per Common Share              (0.01)      (0.07)      (0.02)      (0.22)
                             ------------------------------------------------
                             ------------------------------------------------
    

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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