Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") (TSX VENTURE:BMR.H)
today announced its second 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 September 5, 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 June 30, 2014, Bradmer recorded a net loss of $21,000
or $0.001 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 $27,000 or
$0.001 per common share for the quarter ended June 30, 2013 based on the
weighted average outstanding shares of 19,659,726.
Fee income of $46,000 was generated in the second quarter from Alpha by Bradmer
agreeing to an extension of the deadline to July 15, 2014 to enter into a
definitive agreement with respect to the Proposed Transaction. Alpha agreed to
pay Bradmer an additional Cdn$25,000 in July 2014 to extend the deadline to
enter into a definitive agreement to September 5, 2014.
General and administrative expenses were $52,000 in the three months ended June
30, 2014 compared to $43,000 in the same quarter of the prior year. Major
expenses in 2014 consisted of consulting fees of $16,000, legal fees of $23,000,
transfer agent and stock exchange listing fees of $7,000 and directors' and
officers' liability insurance premiums of $4,000. In 2013, major expenses
included consulting fees of $18,000, legal fees of $8,000, transfer agent and
stock exchange listing fees of $6,000 and directors' and officers' liability
insurance premiums of $4,000.
The $15,000 foreign exchange loss in the second quarter of 2014 offset the
$15,000 foreign exchange gain in the same quarter of 2013.
For the six months ended June 30, 2014, the Company recorded a net loss of
$54,000 or $0.003 per common share based on the weighted average outstanding
shares of 19,659,726 during the six month period, compared to a net loss of
$62,000 or $0.003 per common share for the six months ended June 30, 2013 based
on the weighted average outstanding shares of 19,659,726.
Fee income of $46,000 was generated in 2014 from Alpha by agreeing to an
extension of the deadline from April 30, 2014 to July 15, 2014 to enter into a
definitive agreement with respect to the Proposed Transaction.
General and administrative expenses were $101,000 in the six months ended June
30, 2013 compared to $87,000 in the same period of the prior year. Major
expenses in 2014 consisted of consulting fees of $33,000, legal fees of $49,000,
transfer agent and stock exchange listing fees of $8,000 and insurance premiums
of $7,000. In 2013, expenses included consulting fees of $36,000, legal fees of
$19,000, insurance premiums of $11,000, transfer agent and stock exchange
listing fees of $8,000 and audit fees of $9,000. Coverage on the directors' and
officers' liability insurance was reduced from $5,000,000 to $2,000,000 in 2013.
A $1,600 foreign exchange gain in the first half of 2014 contrasted with a
$24,000 foreign exchange gain in the prior year.
The operational activities for the six month ended June 30, 2014 were financed
by cash on hand. At June 30, 2014, Bradmer had working capital of $726,000,
compared to $784,000 at December 31, 2013. The Company had available cash of
$752,000 at June 30, 2014, compared to cash of $801,000 at December 31, 2013.
The decrease was due to the $55,000 operating loss incurred in the first half of
2014.
As at August 5, 2014 and June 30, 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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June 30, December 31,
2014 2013
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(Audited)
Assets
Current assets,
Cash $751,671 $800,568
Amounts receivable - 6,668
Prepaid expenses 9,484 3,079
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Total assets $761,155 $810,315
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $34,662 $25,665
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Shareholders' Equity,
Share capital 2,150,807 2,158,896
Contributed surplus 2,376,709 2,385,647
Accumulated other comprehensive income 111,221 98,604
Deficit (3,912,244) (3,858,497)
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Total shareholders' equity 726,493 784,650
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Total liabilities and shareholders' equity $761,155 $810,315
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Approved on behalf of the Board:
"Dale Boden" "Charles Lilly"
Dale Boden, Director Charles Lilly, Director
BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Comprehensive Income
For the six months ended June 30, 2014 and 2013
(All amounts expressed in United States dollars)
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Six Months Ended Three Months Ended
June 30 June 30
2014 2013 2014 2013
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Fee income $45,587 $ - $45,587 $ -
Expenses
General and administrative 101,002 86,577 51,957 42,543
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55,415 86,577 6,370 42,543
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Other Income
Interest 94 103 47 52
Foreign exchange
gain/(loss) 1,574 24,221 (14,742) 15,157
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1,668 24,314 (14,695) 15,209
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Loss for the period $(53,747) $(62,263) $(21,065) $(27,334)
Other comprehensive
income/(loss) 12,617 212,387 (129,276) 131,411
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Comprehensive income/(loss)
for the period $(41,130) $150,124 $(150,341) $104,077
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Loss per share
Basic and diluted $0.003 $0.003 $0.001 $0.001
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Weighted average number of
shares outstanding 19,659,726 19,659,726 19,659,726 19,659,726
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Changes in Shareholders' Equity
For the six months ended June 30, 2014 and 2013
(All amounts expressed in United States dollars)
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Share capital
------------------------------
Other
Number of Contributed Comprehensive
shares Amount surplus
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Balance, January 1, 2013 19,659,726 $2,307,972 $2,550,381
Foreign currency translation
adjustment - (124,856) (137,970)
Loss for the period - - -
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Balance, June 30, 2013 19,659,726 $2,183,116 $2,412,411
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Balance, January 1, 2014 19,659,726 $2,158,896 $2,385,647
Foreign currency translation
adjustment - (8,089) (8,938)
Loss for the period - - -
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Balance, June 30, 2014 19,659,726 $2,150,807 $2,376,709
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Accumulated
Shareholders' Total
Income/ (Loss) Deficit equity
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Balance, January 1, 2013 $(156,515) $(3,730,371) $971,467
Foreign currency translation
adjustment 212,387 - (50,439)
Loss for the period - (62,263) (62,263)
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Balance, June 30, 2013 $55,872 $(3,792,634) $858,765
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Balance, January 1, 2014 $98,604 $(3,858,497) $784,650
Foreign currency translation
adjustment 12,617 - (4,410)
Loss for the period - (53,747) (53,747)
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Balance, June 30, 2014 $111,221 $(3,912,244) $726,493
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Cash Flows
For the six months ended June 30, 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 $(53,747) $(62,263)
Adjustments for:
Foreign exchange gain (4,410) (50,439)
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(58,157) (112,702)
Change in non-cash operating items
Amounts receivable 6,668 (1,257)
Prepaid expenses (6,405) (4,339)
Accounts payable and accrued expenses 8,997 2,262
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Decrease in cash (48,897) (116,038)
Cash at beginning of period 800,568 990,759
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Cash at end of period $751,671 $874,721
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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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