LONDON, ONTARIO -- (Marketwired) -- 09/29/14 -- Critical Outcome Technologies Inc. (TSX VENTURE: COT)(OTCQB: COTQF) ("COTI" or the "Company") the bioinformatics and accelerated drug discovery company, reported its financial and operating results today for the three months ended July 31, 2014.
Highlights for the quarter included:
-- receiving the Orphan Drug Designation from the U.S. Food and Drug
Administration ("FDA") for COTI-2 in the treatment of ovarian cancer;
-- completing the two-species toxicity studies for COTI-2 successfully in
support of a filing for a Phase 1 clinical trial;
-- completing additional and definitive testing confirming COTI-2's p53-
dependent mechanism of action at dosages 60% lower than previously used
in similar experiments that potentially translates into better efficacy
and even better safety for the upcoming Phase 1 study;
-- completing a private placement to provide additional funding for
operations;
-- attendance at five international conferences in support of licensing
COTI-2, developing collaborations using the Company's CHEMSAS®
platform and for investor relations purposes; and,
-- commencing trading on the OTCQB venture stage marketplace in the United
States under the symbol COTQF.
"The receipt of the Orphan Drug Designation for COTI-2 significantly enhanced the already positive profile of our lead cancer drug candidate," said Dr. Wayne Danter, President and CEO. "We believe that COTI-2, with its p53-dependent mechanism of action, will have a major impact on ovarian cancer, which is the fifth most common cancer in women, and the most lethal women's cancer. The financing obtained during the quarter, enabled us to move forward with the preparation of our investigational new drug filing for COTI-2 with the FDA and to proceed with other commercial activities to realize on their potential."
Financial Results
The Company reported a quarterly net loss of $970,796, or $0.01 per share, in the first quarter of fiscal 2015 compared to a net loss of $500,052, or $0.01 per share, for the first quarter a year earlier. The increased loss of $470,744 related to an increase in costs in all functional areas partially offset by an increase in investment tax credits related to higher research and development expenditures. Research and development expenditures increased $101,696 reflecting an increase in the development and testing of COTI-2 compared to the first quarter in fiscal 2014 related to the two-species toxicity testing, the Orphan Drug application, and preparation of an investigational new drug application for a Phase 1 human trial. General and administration expenditures increased $347,457 related primarily to an increase of $300,379 in professional fees for strategic advice in pursuing financing in the United States that was primarily paid by issuing common share purchase warrants as announced in April 2014.
Financing
During the quarter, the Company generated over $1 million to fund operations with gross proceeds of $895,222 in a non-brokered private placement with accredited investors and a further $118,341 on the exercise of warrants and options. The Company also amended a total of 18,095,135 warrants issued in prior years' private placements as a source of future funding.
More detailed operating and financial results can be found in the Company's Unaudited Condensed Interim Financial Statements and Management Discussion and Analysis for the quarter ended July 31, 2014, which can be found on SEDAR at www.sedar.com or on the Company's website at www.criticaloutcome.com.
About Critical Outcome Technologies Inc. (COTI)
COTI is a leading-edge bioinformatics company specializing in accelerating the discovery and development of small molecules - dramatically reducing the time and cost to bring new drugs to market. COTI's proprietary artificial intelligence system, CHEMSAS®, utilizes a series of predictive computer models to identify compounds with a high probability of being successfully developed from disease specific drug discovery through chemical optimization and preclinical testing. These compounds are targeted for a variety of diseases, particularly those for which current treatments are either lacking or ineffective.
Follow @CriticalOutcome on Twitter at http://twitter.com/CriticalOutcome.
Notice to Readers
Information contained in this press release may contain certain statements, which constitute "forward- looking statements" within the meaning of the Securities Act (Ontario) and applicable securities laws. For example, the statement "We believe that COTI-2, with its p53-dependent mechanism of action, will have a major impact on ovarian cancer..." and "... amended a total of 18,095,135 warrants issued in prior years' private placements as a source of future funding" are forward-looking statements. Forward-looking statements, by their nature, are not guarantees of future performance and are based upon management's current expectations, estimates, projections and assumptions. COTI operates in a highly competitive environment that involves significant risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. Management of COTI considers the assumptions on which these forward-looking statements are based to be reasonable, but as a result of the many risk factors, cautions the reader that actual results could differ materially from those expressed or implied in these forward-looking statements. Information in this press release should be considered accurate only as of the date of the release and may be superseded by more recent information disclosed in later press releases, filings with the securities regulatory authorities or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Critical Outcome Technologies Inc.
Dr. Wayne Danter
President & CEO
519-858-5157
wdanter@criticaloutcome.com
www.criticaloutcome.com
Heisler Communications
Trevor Heisler
Investor Relations
416-500-8061
trevor@heislercommunications.com
