Acasti Pharma Announces Results for Third Quarter of Fiscal 2021
February 09 2021 - 06:55AM
Acasti Pharma Inc. (“Acasti or the “Company”) (NASDAQ: ACST –
TSX-V: ACST) today announced its operating and financial results
for the third quarter of fiscal 2021 ended December 31, 2020.
Recent Events:
Engaged Oppenheimer & Co. Inc. to
Assist in Strategic Review. On September 29, 2020 the
Company announced that it had commenced a formal process to explore
and evaluate strategic alternatives to enhance shareholder value.
Towards this end, Acasti engaged Oppenheimer & Co., Inc., as
the Company’s financial advisor to assist in the process. There can
be no assurance of a successful outcome from these efforts, or of
the form or timing of any such outcome. Acasti expects to devote
significant time and resources to identifying and evaluating
strategic alternatives, however, there can be no assurance that
such activities will result in any agreements or transactions that
will enhance shareholder value. The Company does not intend to make
any further disclosures regarding the strategic review process
unless and until a specific course of action is approved by our
Board of Directors.
Third Quarter of Fiscal 2021 Financial
Results (US dollars):
The consolidated financial statements have been
prepared in accordance with generally accepted accounting
principles in the United States of America (“U.S. GAAP”).
- Loss from
operations for the three months December 31, 2020 was $2.0
million, compared to a loss from operations of $6.1 million for the
three months ended December 31, 2019. The change was due mainly to
a reduction in R&D, general and administrative expenses, and
sales and marketing expenses.
- Net loss for the
three months ended December 31, 2020 was $3.2 million or $0.03 per
share, a decrease of $8.9 million from the net loss $12.1 million
or $0.14 per share for the three months ended December 31, 2019.
The reduction in net loss, resulted primarily from net financial
expenses decreasing by $4.7 million to a loss of $1.3 million for
the three months ended December 31, 2020, as compared to net
financial expenses of $6.0 million for the three months ended
December 31, 2019. This is due mostly to a decreased impact from
the change in fair value of the derivative warrant liability as
compared to the comparative fiscal quarter in 2019, caused by a
proportionately higher decrease in the quarter over quarter closing
share price partly offset by a reduction in the number of warrants
outstanding due to exercises during the prior year.
- R&D expenses
before depreciation, amortization and stock-based compensation
expense for the three months ended December 31, 2020 totaled $620
thousand compared to $3.2 million for the three months ended
December 31, 2019. The net decrease was mainly attributable to a
reduction in research contracts with the reduction in R&D
activities as well as a reduction in headcount within the
department.
- General and Administrative
expenses before stock-based compensation expenses were
$931 thousand for the three-months ended December 31, 2020 and
decreased by $262 thousand from $1.2 million for the three months
ended December 31, 2019. This decrease is mostly a result of a $251
thousand decrease related to legal and professional fees.
- Sales and Marketing
expenses before stock-based compensation expenses were
$488 thousand for the three months ended December 31, 2020 compared
to $562 thousand for the three months ended December 31, 2019. The
change was related to severances associated to the reduction in
headcount in the department of $118 thousand, offset by the
reduction in professional fees and other sales activities of $192
thousand as a result of an end to planned pre-launch marketing
activities for CaPre.
- Cash flows Cash,
cash equivalents totaled $26.5 million as of December 31, 2020,
compared to $14.2 million at March 31, 2020. Acasti believes that
existing cash will fully fund the Company’s operations through to
an eventual completion of the evaluation of strategic options or at
least through the next 12 months, but there can be no assurance as
to when or whether Acasti will complete any strategic transaction
or collaboration. The Company’s ability to continue as a going
concern is dependent upon its ability to achieve a successful
strategic alternative and ultimately generate cashflows to meet its
obligations.
About Acasti
Acasti is a biopharmaceutical innovator that has
historically focused on the research, development and
commercialization of prescription drugs using OM3 fatty acids
delivered both as free fatty acids and bound-to-phospholipid
esters, derived from krill oil. OM3 fatty acids have extensive
clinical evidence of safety and efficacy in lowering triglycerides
in patients with hypertriglyceridemia, or HTG. CaPre, an OM3
phospholipid therapeutic, was being developed for patients with
severe HTG.
Forward
Looking
Statements
Statements in this press release that are not
statements of historical or current fact constitute
“forward-looking information” within the meaning of Canadian
securities laws and “forward-looking statements” within the meaning
of U.S. federal securities laws (collectively, “forward-looking
statements”). Such forward-looking statements involve known and
unknown risks, uncertainties, and other unknown factors that could
cause the actual results of Acasti to be materially different from
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties, readers are urged
to consider statements labeled with the terms “believes,” “belief,”
“expects,” “intends,” “anticipates,” “potential,” “should,” “may,”
“will,” “plans,” “continue”, “targeted” or other similar
expressions to be uncertain and forward-looking. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release.
The forward-looking statements contained in this
press release are expressly qualified in their entirety by this
cautionary statement, the “Special Note Regarding Forward-Looking
Statements” section contained in Acasti’s latest annual report on
Form 10-K and quarterly report on Form 10-Q, which are available on
EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com and on
the investor section of Acasti’s website at www.acastipharma.com.
All forward-looking statements in this press release are made as of
the date of this press release. Acasti does not undertake to update
any such forward-looking statements whether as a result of new
information, future events or otherwise, except as required by law.
The forward-looking statements contained herein are also subject
generally to assumptions and risks and uncertainties that are
described from time to time in Acasti’s public securities filings
with the Securities and Exchange Commission and the Canadian
securities commissions, including Acasti’s latest annual report on
Form 10-K and quarterly report on Form 10-Q under the caption “Risk
Factors”.
Neither NASDAQ, 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 or accuracy of this release.
Acasti
Contact:Jan
D’AlviseChief Executive OfficerTel: 450-686-4555Email:
info@acastipharma.comwww.acastipharma.com
Investor
Contact:Crescendo
Communications, LLCTel: 212-671-1020Email:
ACST@crescendo-ir.com
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