Bradmer announces 2010 second quarter financial results
TSX-V: BMR.H
TORONTO, Aug. 6 /CNW/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") today announced its 2010 second quarter financial results.
Operational Highlights
On July 29, 2010, subsequent to the quarter end, the Company announced that it had issued and sold, on a private placement basis, an aggregate 5,263,158 common shares at a price of CDN$0.095 per share, for aggregate gross proceeds to the Company of CDN$500,000 (approximately US$475,000).
The proceeds of the Offering will be used primarily for general corporate purposes. Completion of the financing is subject to the final approval of the NEX Board of the TSX Venture Exchange. The common shares issued pursuant to the Offering will be subject to a hold period expiring four months and one day after the closing date of the financing.
In connection with the financing, Wildlaw Capital Markets Inc. received a cash commission of CDN$19,250 and warrants exercisable to acquire 202,631 common shares at a price of CDN$0.095 per share, for a period of 12 months following the closing date of the transaction.
The Company has continued to execute on its cash conservation plan in the second quarter after the termination of all staff and the elimination of clinical trial related expenses. Dr. Alan Ezrin and Paul Van Damme continue to serve as Chief Executive Officer and Chief Financial Officer, respectively, on a part-time consultancy basis.
Financial Results
Amounts in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP).
For the three months ended June 30, 2010, Bradmer recorded a net loss of $161,000 or $0.01 per common share based on the weighted average outstanding shares of 14,396,574 during the period, compared to a net loss of $1,762,000 or $0.13 per common share for the three months ended June 30, 2009 based on the weighted average outstanding shares of 13,488,215. The decreased loss in 2010 was due to the wind-down of the Company's lead clinical program, Neuradiab, in preparation for the planned dormancy of the Company as well as the reduction in the Company's staffing and administrative functions during 2009.
Research and development expenses totaled $17,000 in the three months ended June 30, 2010, compared to $824,000 in the second quarter of 2009. The decrease was due to the cessation of the clinical trial and related manufacturing activities during 2009. Expenses in 2010 consisted primarily of patent fees and drug storage costs. Stock-based compensation amounted to $4,000 in 2010.
General and administrative expenses were $116,000 in the second quarter of 2010 compared to $734,000 in the same period of 2009 as a result of the wind-down of the Company's operations. As at December 31, 2009, all employees had been terminated and their employment contracts satisfied. Expenses in 2010 consisted primarily of consulting and legal fees, stock exchange listing fees and directors and officers' liability insurance.
For the six months ended June 30, 2010, Bradmer recorded a net loss of $278,000 or $0.03 per common share based on the weighted average outstanding shares of 10,465,936 during the period, compared to a net loss of $3,954,000 or $0.29 per common share for the six months ended June 30, 2009 based on the weighted average outstanding shares of 13,488,215. The decreased loss in 2010 was due to the wind-down of the Company's lead clinical program, Neuradiab, in preparation for the planned dormancy of the Company as well as the reduction in the Company's staffing and administrative functions during 2009.
Research and development expenses totaled $36,000 in the six months ended June 30, 2010, compared to $2,246,000 in the same period of 2009. The decrease was due to the cessation of the clinical trial and related manufacturing activities during 2009. Expenses in 2010 consisted primarily of patent fees and drug storage costs. Stock-based compensation amounted to $9,000 in 2010.
General and administrative expenses were $224,000 in the first half of 2010 compared to $1,499,000 in the same period of 2009 as a result of the wind-down of the Company's operations. Expenses in 2010 consisted primarily of consulting and legal fees, stock exchange listing fees and directors and officers' liability insurance.
At June 30, 2010, the Company had working capital of $1,233,000, as compared to $810,000 at December 31, 2009. Bradmer had available cash of $1,226,000 at June 30, 2010, as compared to cash of $860,000 at December 31, 2009. The increase was due to the private placement financing partially offset by the operating loss incurred in the period and the reduction in accounts payable and accrued liabilities.
As at June 30, 2010, there were 14,396,574 common shares issued and outstanding, 3,311,932 warrants and 499,000 stock options.
Additional information about the Company, including the MD&A and financial results may be found on SEDAR at www.sedar.com.
About Bradmer Pharmaceuticals Inc. (www.bradmerpharma.com)
Bradmer Pharmaceuticals' lead clinical candidate, Neuradiab, was developed at Duke University Medical Center as a proprietary therapy for a particularly aggressive form of brain cancer, glioblastoma multiforme (GBM). Neuradiab was granted Orphan Drug Status by both the U.S. Food and Drug Administration and the European Medicines Agency. Bradmer suspended enrolment of primary GBM patients in its Phase III multi-center clinical trial of Neuradiab in the first quarter of 2009. The Company seeks a change in business during the coming months.
Bradmer Pharmaceuticals Inc.'s common shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state regulatory agency in the United States. The resale or transfer by a U.S. investor of such common shares of Bradmer Pharmaceuticals Inc. is subject to the requirements of Rule 904 of Regulation S of the Securities Act or such other applicable exemption thereunder, and other applicable state securities laws.
Except for historical information, this news release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.
Financial results are included below:
Bradmer Pharmaceuticals Inc. Balance Sheets US $ June 30, December 31, 2010 2009 ------------ ------------ Assets (audited) Current Cash $ 1,225,741 $ 860,460 Amounts receivable 3,981 1,944 Prepaid expenses and other assets 41,131 14,246 ------------ ------------ $ 1,270,853 $ 876,650 ------------ ------------ ------------ ------------ Liabilities Current Accounts payable and accrued liabilities $ 38,125 $ 66,225 ------------ ------------ Shareholders' Equity Capital stock 1,754,314 1,076,755 Warrants 795,486 783,988 Contributed surplus 1,485,299 1,474,503 Deficit (2,802,371) (2,524,821) ------------ ------------ 1,232,728 810,425 ------------ ------------ $ 1,270,853 $ 876,650 ------------ ------------ ------------ ------------ Bradmer Pharmaceuticals Inc. Statements of Operations and Deficit US $ Three Months Three Months Six Months Six Months Ended June Ended June Ended June Ended June 30, 2010 30, 2009 30, 2010 30, 2009 ------------ ------------ ------------ ------------ Expenses Research & development $ 17,311 $ 823,900 $ 36,393 $ 2,245,870 General & administration 115,686 734,299 223,761 1,498,503 Amortization of patent rights - 16,100 - 32,195 Write-down of patent rights - 200,000 - 200,000 Foreign exchange loss/(gain) 28,320 (10,216) 17,934 597 ------------ ------------ ------------ ------------ 161,317 1,764,083 278,088 3,977,165 Interest income 291 1,900 538 22,877 ------------ ------------ ------------ ------------ Net loss (161,026) (1,762,183) (277,550) (3,954,288) Deficit at beginning of period (2,641,345) (27,857,598) (2,524,821) (25,665,493) ------------ ------------ ------------ ------------ Deficit at end of period $ (2,802,371) $(29,619,781) $ (2,802,371) $(29,619,781) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Basic and diluted net loss per share $ (0.01) $ (0.13) $ (0.03) $ (0.29) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Weighted average number of shares 14,396,574 13,488,215 10,465,936 13,488,215 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Bradmer Pharmaceuticals Inc. Statements of Cash Flows US $ Three Months Three Months Six Months Six Months Ended June Ended June Ended June Ended June 30, 2010 30, 2009 30, 2010 30, 2009 ------------ ------------ ------------ ------------ Cash flows from operating activities Net loss for the period $ (161,026) $ (1,762,183) $ (277,550) $ (3,954,288) Add items not affecting cash Amortization of patents - 16,100 - 32,195 Write-down of patent rights - 200,000 - 200,000 Stock-based compensation 5,238 94,449 10,796 92,602 ------------ ------------ ------------ ------------ (155,788) (1,451,634) (266,754) (3,629,491) Changes in non-cash working capital items Amounts receivable 4,548 7,773 (2,037) 8,500 Prepaid expenses 17,396 20,220 (26,885) (18,157) Accounts payable and accrued liabilities 17,147 (1,096,512) (28,100) (1,139,278) ------------ ------------ ------------ ------------ (116,697) (2,520,153) (323,776) (4,778,426) ------------ ------------ ------------ ------------ Cash flows from investing activities Investment in patent rights - (349) - (5,208) ------------ ------------ ------------ ------------ - (349) - (5,208) ------------ ------------ ------------ ------------ Cash flows from financing activities Issuance of capital stock, net of share issue costs - - 677,559 - Issuance of warrants, net of issue costs - - 11,498 - ------------ ------------ ------------ ------------ - - 689,057 - ------------ ------------ ------------ ------------ (Decrease) / Increase in cash during the period) (116,697) (2,520,502) 365,281 (4,783,634) Cash and cash equivalents at beginning of period 1,342,438 5,982,323 860,460 8,245,455 ------------ ------------ ------------ ------------ Cash and cash equivalents at end of period 1,225,741 $ 3,461,821 $ 1,225,741 3,461,821 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
%SEDAR: 00023367E
For further information: Bradmer Pharmaceuticals Inc., Alan Ezrin, PhD, President & Chief Executive Officer, Phone: (305) 929-3125, E-mail: [email protected], Internet: www.bradmerpharma.com; Investor Relations, Ross Marshall, The Equicom Group Inc., Phone: (416) 815-0700 (Ext. 238), Fax: (416) 815-0080, E-mail: [email protected]
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