HALIFAX, June 29, 2012 /CNW/ - MedMira Inc., (MedMira) (TSXV: MIR), a developer of rapid diagnostic technology and solutions, reported today on its financial results for the three and nine month periods ending April 30, 2012.
"The Company's third quarter results reflect the lengthy sales cycle that our sales partners are currently experiencing in international markets. We believe that a number of the sales initiatives that are currently underway will conclude successfully in the short term," said Hermes Chan, CEO, MedMira Inc. "Subsequent to the close of the quarter MedMira was successful in securing a substantial investment from Andurja Beteiligungen AG that will fuel the Company's ongoing sales, marketing and business development activities around the globe. This investment also enabled the improvement of the Company's debt position with the elimination of over $11.8 million in debt. With a greatly improved financial position and global business development strategies aligned for success, MedMira is poised for growth."
Third Quarter Financial Highlights
- The Company recorded revenue from product sales of $189,398 as compared to $295,534 for the same period last year. The decrease in sales was due to higher number in Q3 of 2011 from a one-time sale in the Africa market, along with weaker North American sales in Q3 of 2012.
- The Company recorded increased revenue from Asia Pacific product sales of $63,130 over the same period last year.
- Gross profit for the quarter was $131,393 compared to $148,651 in the same period in 2011.
- Total operating expenses increased to $679,300 in the quarter ended April 30, 2012, compared to $534,810 during the same period in 2011. The increase in operating expenses is attributed to R&D expenses associated with the US Army contract and other projects as well as increased professional fees.
- Subsequent to the close of the third quarter, the Company completed a $6 million equity investment from Andurja Beteiligungen AG. Additionally, On June 12, 2012, MedMira announced that it had paid $1,806,481 to reduce the Company's debt position by $11,834,592. The debt reduction occurred through various compromise and negotiated debt holder settlements.
MedMira is a leading developer and manufacturer of flow-through rapid diagnostics. The company's tests provide hospitals, labs, clinics and individuals with reliable, rapid diagnosis for diseases such as HIV and hepatitis C in just three minutes. The company's tests are sold under the Reveal®, Multiplo™ and Miriad brands in global markets. MedMira's rapid flow-through HIV test is the only one in the world to achieve regulatory approvals in Canada, the United States, China and the European Union. MedMira's corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada. For more information visit MedMira's website at www.medmira.com.
This news release contains forward-looking statements, which involve risk and uncertainties and reflect the Company's current expectation regarding future events including statements regarding possible future growth and new business opportunities. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings.
Neither 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 or accuracy of this release.
For further information:
Andrea Young, Corporate Communications
Email: [email protected]