TORONTO, ONTARIO -- (Marketwired) -- 10/15/14 -- Bradmer Pharmaceuticals Inc. (NEX: BMR.H) ("Bradmer" or the "Company") today announced its third 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.
In October 2014, Alpha agreed to pay Bradmer Cdn$25,000 to extend the deadline to enter into a definitive agreement until November 14, 2014. This latest renewal of the letter of intent no longer contains an exclusivity period and, as such, Bradmer may enter into discussions with other interested parties. Should those discussions proceed, Bradmer may terminate the letter of intent with Alpha on five days' written notice and refund Cdn$10,000 of the fee to Alpha at that time. 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 September 30, 2014, the Company recorded net income of $15,000 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 $47,000 or $0.002 per common share for the quarter ended September 30, 2013 based on the weighted average outstanding shares of 19,659,726.
Fee income of $23,000 was generated in the third quarter by Bradmer agreeing to an extension of the letter of intent deadline from July 15, 2014 to September 5, 2014 to enter into a definitive agreement with respect to the Proposed Transaction with Alpha.
General and administrative expenses were $29,000 in the three months ended September 30, 2014 compared to $39,000 in the same quarter of the prior year. Major expenses in 2014 consisted of consulting fees of $16,500, audit fees of $6,000, legal fees of $2,000 and directors' and officers' liability insurance premiums of $4,000. In 2013, major expenses included consulting fees of $18,000, audit fees of $4,000, legal fees of $7,000, transfer agent and stock exchange listing fees of $4,000 and directors' and officers' liability insurance premiums of $4,000.
The $21,000 foreign exchange gain in the third quarter of 2014 contrasted with the $7,500 foreign exchange loss in the same quarter of 2013.
For the nine months ended September 30, 2014, Bradmer recorded a net loss of $39,000 or $0.002 per common share based on the weighted average outstanding shares of 19,659,726 during the nine month period, compared to a net loss of $109,000 or $0.006 per common share for the nine months ended September 30, 2013 based on the weighted average outstanding shares of 19,659,726.
Fee income of $69,000 was generated in 2014 from Alpha by agreeing to extensions of the letter of intent deadline to enter into a definitive agreement with respect to the Proposed Transaction from April 30, 2014 to September 5, 2014.
General and administrative expenses were $130,000 in the nine months ended September 30, 2013 compared to $126,000 in the same period of the prior year. Major expenses in 2014 consisted of consulting fees of $49,000, legal fees of $51,000, transfer agent and stock exchange listing fees of $8,000, audit fees of $6,000 and insurance premiums of $11,000. In 2013, expenses included consulting fees of $53,000, legal fees of $25,000, insurance premiums of $15,000, audit fees of $13,000 and transfer agent and stock exchange listing fees of 11,000.
A $22,000 foreign exchange gain in the first nine months of 2014 compared with a $17,000 foreign exchange gain in the prior year period.
The Company's operational activities for the nine month ended September 30, 2014 were financed by cash on hand. At September 30, 2014, Bradmer had working capital of $707,000, compared to $784,000 at December 31, 2013. It had available cash of $734,000 at September 30, 2014, compared to cash of $801,000 at December 31, 2013. The decrease was due to the $39,000 operating loss incurred in the first nine months of 2014 and the $39,000 foreign exchange translation adjustment.
As at October 15, 2014 and September 30, 2014, the Company had 19,659,726 common shares and options to purchase 1,950,000 common shares outstanding.
Bradmer Pharmaceuticals Inc.
Paul Van Damme
Chief Financial Officer
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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September 30, December 31,
2014 2013
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(Audited)
Assets
Current assets,
Cash $ 734,120 $ 800,568
Amounts receivable - 6,668
Prepaid expenses 5,424 3,079
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Total assets $ 739,544 $ 810,315
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Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 32,390 $ 25,665
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Shareholders' Equity,
Share capital 2,050,180 2,158,896
Contributed surplus 2,265,512 2,385,647
Accumulated other comprehensive income 288,830 98,604
Deficit (3,897,368) (3,858,497)
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Total shareholders' equity 707,154 784,650
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Total liabilities and shareholders' equity $ 739,544 $ 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 nine months ended September 30, 2014 and 2013
(All amounts expressed in United States dollars)
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Nine Months Ended Three Months Ended
September 30 September 30
2014 2013 2014 2013
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Fee income $ 68,531 $ - $ 22,943 $ -
Expenses
General and
administrative 129,765 125,701 28,763 39,124
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61,234 125,701 5,820 39,124
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Other Income
Interest 140 156 47 54
Foreign exchange
gain/(loss) 22,223 16,664 20,648 (7,547)
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22,363 16,820 20,695 (7,493)
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Income/(loss) for the
period $ (38,871) $ (108,881) $ 14,875 $ (46,618)
Other comprehensive
income/(loss) 190,226 149,335 177,609 (63,052)
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Comprehensive
income/(loss) for the
period $ 151,355 $ 40,454 $ 192,484 $ (109,670)
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Income/(loss) per share
Basic and diluted $ (0.002) $ (0.006) $ 0.001 $ (0.002)
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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 nine months ended September 30, 2014 and 2013
(All amounts expressed in United States dollars)
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Contributed
Share capital surplus
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Number of
shares Amount
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Balance, January 1, 2013 19,659,726 $ 2,307,972 $ 2,550,381
Foreign currency translation
adjustment - (87,993) (97,236)
Loss for the period - - -
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Balance, September 30, 2013 19,659,726 $ 2,219,979 $ 2,453,145
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Balance, January 1, 2014 19,659,726 $ 2,158,896 $ 2,385,647
Foreign currency translation
adjustment - (108,716) (120,135)
Loss for the period - - -
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Balance, September 30, 2014 19,659,726 $ 2,050,180 $ 2,265,512
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Changes in Shareholders' Equity
For the nine months ended September 30, 2014 and 2013
(All amounts expressed in United States dollars)
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Accumulated
Other
Comprehensive Total
Income/ Shareholders'
(Loss) Deficit equity
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Balance, January 1, 2013 $ (156,515) $(3,730,371) $ 971,467
Foreign currency translation
adjustment 149,335 - (35,894)
Loss for the period - (108,881) (108,881)
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Balance, September 30, 2013 $ (7,180) $(3,839,252) $ 826,692
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Balance, January 1, 2014 $ 98,604 $(3,858,497) $ 784,650
Foreign currency translation
adjustment 190,226 - (38,625)
Loss for the period - (38,871) (38,871)
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Balance, September 30, 2014 $ 288,830 $(3,897,368) $ 707,154
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BRADMER PHARMACEUTICALS INC.
Condensed Interim Statements of Cash Flows
For the nine months ended September 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 $ (38,871) $ (108,881)
Adjustment for:
Foreign exchange translation (38,625) (35,894)
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(77,496) (144,775)
Change in non-cash operating items
Amounts receivable 6,668 (791)
Prepaid expenses (2,345) (586)
Accounts payable and accrued expenses 6,725 (7,291)
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Decrease in cash (66,448) (153,443)
Cash at beginning of period 800,568 990,759
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Cash at end of period $ 734,120 $ 837,316
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Contacts:
Bradmer Pharmaceuticals Inc.
Paul Van Damme
Chief Financial Officer
1.416.847.6905
pvandamme@bradmerpharma.com
