Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") (TSX VENTURE:BMR.H)
today announced its first quarter 2014 operational and financial results.
Operational Highlights
On February 19, 2014, the Company announced that it had entered into a letter of
intent with Alpha Cancer Technologies Inc. ("Alpha") to complete a going-public
transaction for Alpha (the "Proposed Transaction"). Alpha is a pre-clinical
biopharmaceutical company with a targeted chemotherapy delivery platform focused
on the global oncology market. Alpha holds the exclusive worldwide rights to
recombinant human Alpha Fetoprotein (AFP), a shuttle protein that targets AFP
receptors found almost exclusively on most solid and liquid cancer cells.
In conjunction with, and prior to the closing of the Proposed Transaction, Alpha
intends to complete a private placement of Alpha Shares, 10% convertible notes,
subscription receipts and/or other securities convertible into Alpha Shares for
aggregate gross proceeds of between $7,000,000 and $10,000,000 (the "Private
Placement"), at an offering price or conversion price, as applicable, of $0.50
per Alpha Share. The pricing of the Private Placement reflects a pre-money
enterprise value for Alpha of approximately $25,000,000.
The Letter of Intent has been renewed and extended until June 1, 2014. All other
terms and conditions of the Agreement remain unchanged.
Financial Results
Amounts in US dollars, unless specified otherwise, and results prepared in
accordance with International Financial Reporting Standards ("IFRS").
For the three months ended March 31, 2014, we recorded a net loss of $33,000 or
$0.002 per common share based on the weighted average outstanding shares of
19,659,726 during the three month period, compared to a net loss of $35,000 or
$0.002 per common share for the quarter ended March 31, 2013 based on the
weighted average outstanding shares of 19,659,726.
General and administrative expenses were $49,000 in the three months ended March
31, 2014 compared to $44,000 in the same quarter of the prior year. Major
expenses in 2014 consisted of consulting fees of $16,000, directors' and
officers' liability insurance premiums of $4,000 and legal fees of $26,000. In
2013, major expenses included consulting fees of $18,000, transfer agent and
stock exchange listing fees of $8,000, directors' and officers' liability
insurance premiums of $7,000 and legal fees of $2,000.
The $16,000 foreign exchange gain in the first quarter of 2014 exceeded the
$9,000 foreign exchange gain in the same quarter of 2013.
First Quarter Results
The major reason for the increase in the loss for the first quarter of 2014 to
$33,000 from the loss in the fourth quarter of 2013 of $19,000 was the increase
in general and administrative expenses from $31,000 to $49,000, due to an
increase in legal fees of $24,000 in connection with the proposed Alpha
transaction.
Sources and Uses of Cash
Our operational activities for the three month ended March 31, 2014 were
financed by cash on hand. At March 31, 2014, we had working capital of $722,000,
compared to $784,000 at December 31, 2013. We had available cash of $749,000 at
March 31, 2014, compared to cash of $801,000 at December 31, 2013. The decrease
was due to the $33,000 operating loss incurred in the first quarter of 2014 and
the foreign currency translation adjustments of $29,000.
As at May 6, 2014 and March 31, 2014, the Company had 19,659,726 common shares
and options to purchase 1,950,000 common shares outstanding.
Additional information about Bradmer, including the MD&A and financial results
may be found on SEDAR at www.sedar.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Bradmer'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.
BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Financial Position
As at
(All amounts expressed in United States dollars)
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March 31, December 31,
2014 2013
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(Audited)
Assets
Current assets,
Cash $ 748,672 $ 800,568
Amounts receivable 7,099 6,668
Prepaid expenses 12,825 3,079
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Total assets $ 768,596 $ 810,315
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 46,188 $ 25,665
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Shareholders' Equity,
Share capital 2,077,447 2,158,896
Contributed surplus 2,295,643 2,385,647
Accumulated other comprehensive income 240,497 98,604
Deficit (3,891,179) (3,858,497)
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Total shareholders' equity 722,408 784,650
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Total liabilities and shareholders' equity $ 768,596 $ 810,315
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Approved on behalf of the Board:
Dale Boden, Director
Charles Lilly, Director
BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Comprehensive Income
For the three months ended March 31, 2014 and 2013
(All amounts expressed in United States dollars)
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2014 2013
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Expenses
General and administrative $ 49,045 $ 44,034
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Other Income
Interest (47) (51)
Foreign exchange gain (16,316) (9,054)
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(16,363) (9,105)
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Loss for the period $ (32,682) $ (34,929)
Other comprehensive income 141,893 80,976
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Comprehensive income for the period $ 109,211 $ 46,047
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Loss per share
Basic and diluted $ (0.002) $ (0.002)
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Weighted average number of shares outstanding 19,659,726 19,659,726
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Changes in Shareholders' Equity
For the three months ended March 31, 2014 and 2013
(All amounts expressed in United States dollars)
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Share capital
--------------------------
Number of Contributed
shares Amount surplus
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Balance, January 1, 2013 19,659,726 $ 2,307,972 $ 2,550,381
Foreign currency
translation
adjustment - (47,931) (52,966)
Loss for the period - - -
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Balance, March 31, 2013 19,659,726 $ 2,260,041 $ 2,497,415
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Balance, January 1, 2014 19,659,726 $ 2,158,896 $ 2,385,647
Foreign currency
translation
adjustment - (81,449) (90,004)
Loss for the period - - -
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Balance, March 31, 2014 19,659,726 $ 2,077,447 $ 2,295,643
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Accumulated Other Total
Comprehensive Shareholders'
Income/ (Loss) Deficit equity
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Balance, January 1, 2013 $ (156,515) $ (3,730,371) $ 971,467
Foreign currency
translation
adjustment 80,976 - (19,921)
Loss for the period - (34,929) (34,929)
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Balance, March 31, 2013 $ (75,539) $ (3,765,300) $ 916,617
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Balance, January 1, 2014 $ 98,604 $ (3,858,497) $ 784,650
Foreign currency
translation
adjustment 141,893 - (29,560)
Loss for the period - (32,682) (32,682)
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Balance, March 31, 2014 $ 240,497 $ (3,891,179) $ 722,408
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Cash Flows
For the three months ended March 31, 2014 and 2013
(All amounts expressed in United States dollars)
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2014 2013
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Cash flows from operating activities
Loss for the period $ (32,682) $ (34,929)
Adjustments for:
Foreign currency translation adjustment (29,560) (19,921)
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(62,242) (54,850)
Change in non-cash operating items
Amounts receivable (431) (2,688)
Prepaid expenses (9,746) (8,665)
Accounts payable and accrued expenses 20,523 8,020
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Decrease in cash (51,896) (58,183)
Cash at beginning of period 800,568 990,759
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Cash at end of period $ 748,672 $ 932,576
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FOR FURTHER INFORMATION PLEASE CONTACT:
Bradmer Pharmaceuticals Inc.
Paul Van Damme
Chief Financial Officer
1.416.847.6905
pvandamme@bradmerpharma.com
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